The Right Thing is probably to write the source file in latin-1 (or
    whatever charset seems approriate), use @documentencoding ISO-8859-1,
    and fix texinfo.tex to deal with that. 

I agree.  I have no estimated time frame on completing this, though.

    Haing to use @iftex is quite annoying, when you have simple words like
    `caf� which appear now and then in the running text.

If the manual is basically in English, you can leave the accent off cafe :).

In any case, you can also use @'e, although the info output won't be
8-bit.  But it will work in TeX.

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