--- /tmp/tramp-sh.el.orig	2013-04-20 13:04:19.218624784 -0700
+++ /tmp/tramp-sh.el	2013-04-20 13:04:59.898624921 -0700
@@ -5018,8 +5018,7 @@
 	       "(%s <%%s | \"%s\")"
 	     "(%s <%%s | %s)")
 	   compress coding))
-	 ((string-match "decoding" prop)
-	  (format "%s >%%s" coding))
+	 ((string-match "decoding" prop) coding)
 	 (t
 	  (format "%s <%%s" coding)))))))