PSpad can handle UTF-16 same as UTF-8. 
Are you sure, your filel is correct file in UTF-16 encoding?

You can switch off binnary detection in PSPad. Go to program settings / Direct
edit and set:
Autodetectbinary=0

Then open your file in PSpad. If it will be in wrong encoding, in menu format
switch to correct UTF-16 and reload file (Ctrl+R)

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PSPad freeware editor http://www.pspad.com

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