When Logwatch sends email it specifies the character encoding as UTF-8, but it also specifies "Content-Transfer-Encoding: 7bit" by default, which means that the message body can only contain ASCII characters. If any string copied from a logfile contains any non-ASCII characters, then the email message becomes invalid and may be rejected by a standards-enforcing mail server. "8bit" should be specified instead to allow the message body to contain UTF-8 text.
Thanks for the patch.