From the man-page:

-8      Request 8-bit operation. This causes an attempt to negotiate the
        TELNET BINARY option for both input and output. By default telnet
        is not 8-bit clean.

If I use the -8 option to telnet, everything works perfectly, including the
東京 and ル examples (“ is another interesting test).

This is a non-bug, as far as I can see.

cheers,

-- 
Wessel Dankers

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