diff --git a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/UniversalFileTransferUtility.java b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/UniversalFileTransferUtility.java
index 87aaadaf241..5fa3d4aa5de 100644
--- a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/UniversalFileTransferUtility.java
+++ b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/UniversalFileTransferUtility.java
@@ -34,6 +34,7 @@
  * David McKnight   (IBM)        - [209375] new API copyRemoteResourcesToWorkspaceMultiple to optimize downloads
  * Rupen Mardirossian (IBM)      - [208435] added constructor to nested RenameRunnable class to take in names that are previously used as a parameter for multiple renaming instances, passed through check collision as well through overloading.
  * Xuan Chen          (IBM)      - [160775] [api] [breaking] [nl] rename (at least within a zip) blocks UI thread
+ * David Mcknight     (IBM)      - [203114] don't treat XML files specially (no hidden prefs for bin vs text) 
  ********************************************************************************/
 
 package org.eclipse.rse.files.ui.resources;
@@ -840,7 +841,7 @@ public class UniversalFileTransferUtility
 			}
 
 			// encoding conversion required if it a text file but not an xml file
-			boolean isBinary = SystemFileTransferModeRegistry.getInstance().isBinary(file) || SystemEncodingUtil.getInstance().isXML(file.getAbsolutePath());
+			boolean isBinary = SystemFileTransferModeRegistry.getInstance().isBinary(file);
 			boolean isEncodingConversionRequired = !isBinary;
 			
 			inputStream = new FileInputStream(file);
diff --git a/rse/plugins/org.eclipse.rse.subsystems.files.core/src/org/eclipse/rse/subsystems/files/core/servicesubsystem/FileServiceSubSystem.java b/rse/plugins/org.eclipse.rse.subsystems.files.core/src/org/eclipse/rse/subsystems/files/core/servicesubsystem/FileServiceSubSystem.java
index b3fb3c26dfa..3b4c1bab76c 100644
--- a/rse/plugins/org.eclipse.rse.subsystems.files.core/src/org/eclipse/rse/subsystems/files/core/servicesubsystem/FileServiceSubSystem.java
+++ b/rse/plugins/org.eclipse.rse.subsystems.files.core/src/org/eclipse/rse/subsystems/files/core/servicesubsystem/FileServiceSubSystem.java
@@ -23,6 +23,7 @@
  * David McKnight   (IBM)        - [207100] fire event after upload and download
  * David McKnight   (IBM)        - [207178] changing list APIs for file service and subsystems
  * David McKnight   (IBM)        - [162195] new APIs for upload multi and download multi
+ * David McKnight   (IBM)        - [203114] don't treat XML files specially (no hidden prefs for bin vs text) 
  *******************************************************************************/
 
 package org.eclipse.rse.subsystems.files.core.servicesubsystem;
@@ -527,15 +528,7 @@ public final class FileServiceSubSystem extends RemoteFileSubSystem implements I
 	
 	protected boolean isBinary(IRemoteFile source)
 	{
-		// if binary or XML file, transfer in binary mode
-		if (source.isBinary() || SystemEncodingUtil.getInstance().isXML(source.getAbsolutePath()))
-		{
-			return true;
-		}
-		else
-		{
-			return false;
-		}
+		return source.isBinary(); // always use preferences (whether xml or not)
 	}
 
 	/*