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Setting UTF-8 in Google App Engine using JAX RS
JQuery ajax call is as follows:
 $.ajax({
        url: 'some url here',
        type: 'post',
        contentType:"application/xml;charset=utf-8",
        scriptCharset: "utf-8" ,
        data: 'some data here',
        success: function(data, status) {
           //code...
        }
    });

<env-variables>
        <env-var name="DEFAULT_ENCODING" value="UTF-8" />
    </env-variables>