--- src/vte.c.orig	2004-12-20 00:57:39 -0800
+++ src/vte.c	2004-12-20 00:57:44 -0800
@@ -7125,7 +7125,11 @@
 		break;
 	default:
 		if (pid != 0) {
+			char *codeset;
 			terminal->pvt->pty_master = i;
+			g_get_charset(&codeset);
+			_vte_pty_set_utf8(terminal->pvt->pty_master,
+					  (strcmp(codeset, "UTF-8") == 0));
 		}
 	}

