mysql parameters cannot be set permanently

Solution Verified - Updated -

Issue

Although it is possible to change character_set_client, character_set_connection, character_set_results within a mysql client from latin1 to utf8, those parameters are not set automatically to utf8 if the following is added in /etc/my.cnf

<br />default-character-set=utf8<br />  

Environment

RHEL5

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