You could use luit
, which would let you run your cp850 application in (whatever locale you can find for this) in a UTF-8 terminal, and let luit
do the translation to/from the UTF-8.
For what it's worth, a screenshot of cp850 with luit:

The screenshots were setup by a set of scripts which displayed a test-screen for each locale encoding. Not all encodings have corresponding locale information configured. The 761 locales listed on my Debian 7 system using locale -a
correspond to only 32 encodings:
ANSI_X3.4-1968 EUC-TW ISO-8859-14 ISO-8859-9
ARMSCII-8 GB18030 ISO-8859-15 KOI8-R
BIG5 GB2312 ISO-8859-2 KOI8-T
BIG5-HKSCS GBK ISO-8859-3 KOI8-U
CP1251 GEORGIAN-PS ISO-8859-5 RK1048
CP1255 ISO-8859-1 ISO-8859-6 TCVN5712-1
EUC-JP ISO-8859-10 ISO-8859-7 TIS-620
EUC-KR ISO-8859-13 ISO-8859-8 UTF-8
If you have a recent version (e.g., 2.0 in 2013) of luit, and the locale information installed, running it is simple:
luit -encoding cp850
That runs a shell in which applications use codepage 850, but your select/paste (and keyboard) are translated to/from the locale encoding in the outer shell (assumed to be UTF-8, since it wouldn't work with just the POSIX locale).
The -v
(verbose) option shows a little detail:
$ luit -encoding cp850 -v -v
getCharsetByName(ASCII)
cachedCharset 'ASCII'
getCharsetByName(<null>)
using unknown 94-charset
getCharsetByName(CP 850)
cachedCharset 'CP 850'
getCharsetByName(<null>)
using unknown 94-charset
Input: G0 is ASCII, G1 is Unknown (94), G2 is CP 850, G3 is Unknown (94).
GL is G0, GR is G2.
Output: G0 is ASCII, G1 is Unknown (94), G2 is CP 850, G3 is Unknown (94).
GL is G0, GR is G2.
Using the older luit doesn't work as well, since it relies upon incomplete locale information. Here's what luit 1.1.1 does:
$ luit -encoding cp850 -v -v
Warning: couldn't find charset data for locale cp850; using ISO 8859-1.
G0 is ASCII, G1 is Unknown (94), G2 is ISO 8859-1, G3 is Unknown (94).
GL is G0, GR is G2.
If you happen to be running OpenSuSE, that provides a package. On the other extreme (e.g., Ubuntu), configuring the locales is a nuisance, but compiling luit
from source is relatively simple.