diff --git a/Compiler/runtime/systemimpl.c b/Compiler/runtime/systemimpl.c
index 32e73e38f33..d5f792b4c7d 100644
--- a/Compiler/runtime/systemimpl.c
+++ b/Compiler/runtime/systemimpl.c
@@ -1834,26 +1834,17 @@ extern int SystemImpl__reopenStandardStream(int id,const char *filename)
   return 1;
 }
 
-static char* SystemImpl__iconv__ascii(const char * str)
+char* SystemImpl__iconv__ascii(const char * str)
 {
-  static char *buf = 0;
-  static int buflen = 0;
+  char *buf = 0;
   char *in_str,*res;
   size_t sz,out_sz;
   iconv_t ic;
   int i;
   sz = strlen(str);
-  if (buflen < sz) {
-    if (buf) free(buf);
-    buf = (char*)malloc(sz);
-    if (!buf) {
-      buflen = 0;
-      return (char*) "";
-    }
-    buflen = sz;
-  }
+  buf = malloc(sz+1);
   *buf = 0;
-  for (i=0; i<sz; i++)
+  for (i=0; i<=sz; i++)
     buf[i] = str[i] & 0x80 ? '?' : str[i];
   return buf;
 }
@@ -1880,9 +1871,12 @@ extern char* SystemImpl__iconv(const char * str, const char *from, const char *t
   /* fprintf(stderr,"iconv(%s,to=%s,%s) of size %d, buflen %d\n",str,to,from,sz,buflen); */
   ic = iconv_open(to, from);
   if (ic == (iconv_t) -1) {
-    char *ignore = SystemImpl__iconv__ascii(str);
-    const char *tokens[4] = {strerror(errno),from,to,ignore};
-    if (printError) c_add_message(-1,ErrorType_scripting,ErrorLevel_error,gettext("iconv(\"%s\",to=\"%s\",from=\"%s\") failed: %s"),tokens,4);
+    if (printError) {
+      char *ignore = SystemImpl__iconv__ascii(str);
+      const char *tokens[4] = {strerror(errno),from,to,ignore};
+      c_add_message(-1,ErrorType_scripting,ErrorLevel_error,gettext("iconv(\"%s\",to=\"%s\",from=\"%s\") failed: %s"),tokens,4);
+      free(ignore);
+    }
     return (char*) "";
   }
   in_str = (char*) str;
@@ -1891,9 +1885,12 @@ extern char* SystemImpl__iconv(const char * str, const char *from, const char *t
   count = iconv(ic,&in_str,&sz,&res,&out_sz);
   iconv_close(ic);
   if (count == -1) {
-    char *ignore = SystemImpl__iconv__ascii(str);
-    const char *tokens[4] = {strerror(errno),from,to,ignore};
-    if (printError) c_add_message(-1,ErrorType_scripting,ErrorLevel_error,gettext("iconv(\"%s\",to=\"%s\",from=\"%s\") failed: %s"),tokens,4);
+    if (printError) {
+      char *ignore = SystemImpl__iconv__ascii(str);
+      const char *tokens[4] = {strerror(errno),from,to,ignore};
+      c_add_message(-1,ErrorType_scripting,ErrorLevel_error,gettext("iconv(\"%s\",to=\"%s\",from=\"%s\") failed: %s"),tokens,4);
+      free(ignore);
+    }
     return (char*) "";
   }
   buf[(buflen-1)-out_sz] = 0;
diff --git a/Compiler/runtime/systemimpl.h b/Compiler/runtime/systemimpl.h
index 74cb4765871..09a9d6b627e 100644
--- a/Compiler/runtime/systemimpl.h
+++ b/Compiler/runtime/systemimpl.h
@@ -97,5 +97,6 @@ extern char* SystemImpl__readFileNoNumeric(const char* filename);
 extern double SystemImpl__getCurrentTime(void);
 extern int SystemImpl__unescapedStringLength(const char* str);
 extern char* SystemImpl__iconv(const char * str, const char *from, const char *to, int printError);
+extern char* SystemImpl__iconv__ascii(const char * str);
 
 #endif //__SYSTEMIMPL_H
diff --git a/Parser/BaseModelica_Lexer.g b/Parser/BaseModelica_Lexer.g
index 458748f51a6..df7d2472bf4 100644
--- a/Parser/BaseModelica_Lexer.g
+++ b/Parser/BaseModelica_Lexer.g
@@ -318,35 +318,38 @@ STRING : '"' STRING_GUTS '"'
            res = SystemImpl__iconv((const char*)text->chars,ModelicaParser_encoding,"UTF-8",0);
            if (!*res) {
              const char *strs[2];
-             signed char *buf  = (signed char*) strdup((char*)text->chars);
+             signed char buf[76];
              int len = strlen((const char*)buf), i;
+             res = SystemImpl__iconv__ascii((const char*)text->chars);
              /* Avoid printing huge strings */
              if (len > 75) {
-               len = 75;
-               buf[len] = 0;
-               buf[len-1] = '.';
-               buf[len-2] = '.';
-               buf[len-3] = '.';
+               len = 72;
+               buf[len+0] = '.';
+               buf[len+1] = '.';
+               buf[len+2] = '.';
+               buf[len+3] = '0';
              }
-             for (i=0;i<len;i++) {
-               if (buf[i] < 0)
-                 buf[i] = '?';
+             for (i=0;i<=len;i++) {
                /* Don't break lines in the printed error-message */
-               if (buf[i] == '\n' || buf[i] == '\r')
+               if (res[i] == '\n' || res[i] == '\r') {
                  buf[i] = ' ';
+               } else {
+                 buf[i] = res[i];
+               }
              }
              strs[0] = (const char*) buf;
              strs[1] = ModelicaParser_encoding;
-             c_add_source_message(2, ErrorType_syntax, ErrorLevel_error, "The file was not encoded in \%s:\n  \"\%s\".\n"
+             c_add_source_message(2, ErrorType_syntax, ErrorLevel_warning, "The file was not encoded in \%s:\n  \"\%s\".\n"
+  "  Defaulting to 7-bit ASCII with unknown characters replaced by '?'.\n"
   "  To change encoding when loading a file: loadFile(encoding=\"ISO-XXXX-YY\").\n"
   "  To change it in a package: add a file package.encoding at the top-level.\n"
   "  Note: The Modelica Language Specification only allows files encoded in UTF-8.",
                   strs, 2, $line, $pos+1, $line, $pos+len+1,
                   ModelicaParser_readonly, ModelicaParser_filename_C_testsuiteFriendly);
-             free(buf);
-             ModelicaParser_lexerError = ANTLR3_TRUE;
-           }
-           if (strcmp(ModelicaParser_encoding,"UTF-8")!=0) {
+             text->set8(text,res);
+             free(res);
+             /* ModelicaParser_lexerError = ANTLR3_TRUE; */
+           } else if (strcmp(ModelicaParser_encoding,"UTF-8")!=0) {
              text->set8(text,res);
            }
          }