Export foreign characters to PDF?

XML Content- 

<?xml version="1.0" encoding="UTF-8"?>
<record>
<name>Test</name>
<friend>
<!-- japanese unicode characters for 'hello'-->
	<name>&#12371;&#12435;&#12395;&#12385;&#12399;</name>
	<phNo>77890011</phNo>
</friend>
<friend>
<!-- japanese plain characters for 'hello'-->
	<name>こんにちは</name>
	<phNo>32323232323</phNo>
</friend>
</record>

XSL Content - 

<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet version="1.1" xmlns:xsl="http://www.w3.org/1999/XSL/Transform" xmlns:fo="http://www.w3.org/1999/XSL/Format"	exclude-result-prefixes="fo">
<xsl:template match="record">
<fo:root xmlns:fo="http://www.w3.org/1999/XSL/Format">
  <fo:layout-master-set>
    <fo:simple-page-master master-name="my-page">
      <fo:region-body margin="1in"/>
    </fo:simple-page-master>
  </fo:layout-master-set>

  <fo:page-sequence master-reference="my-page">
    <fo:flow flow-name="xsl-region-body">
      <fo:block>Hello, <xsl:value-of select="name" />!</fo:block>
      <fo:block>
      	<fo:table>
      		 <fo:table-body>
      		 	<fo:table-row>
                	<fo:table-cell border="solid 1px black" 

			text-align="center" font-weight="bold">
                		<fo:block>
                    		No.
                  		</fo:block>
                	</fo:table-cell>
                	<fo:table-cell border="solid 1px black" 

			text-align="center" font-weight="bold">
                		<fo:block>
                    		Name
                  		</fo:block>
                	</fo:table-cell>
                	<fo:table-cell border="solid 1px black" 

			text-align="center" font-weight="bold">
                		<fo:block>
                    		Phone Number
                  		</fo:block>
                	</fo:table-cell>
                </fo:table-row>
                <xsl:for-each select="./friend">
                	<fo:table-row>
                	<fo:table-cell border="solid 1px black" text-align="center">
                		<fo:block>
                    		<xsl:value-of select="position()" />
                  		</fo:block>
                	</fo:table-cell>
                	<fo:table-cell border="solid 1px black" text-align="center">
                		<fo:block>
                    		<xsl:value-of select="name" />
                  		</fo:block>
                	</fo:table-cell>
                	<fo:table-cell border="solid 1px black" text-align="center">
                		<fo:block>
                    		<xsl:value-of select="phNo" />
                  		</fo:block>
                	</fo:table-cell>
                </fo:table-row>
                </xsl:for-each>
      		 </fo:table-body>
      	</fo:table>
      </fo:block>
    </fo:flow>
  </fo:page-sequence>
</fo:root>
</xsl:template>
</xsl:stylesheet>

Attached the XMl and XSL code. Also tried with UNICODE characters but the smart service is not recognizing them. Even I ran the same Java code on my system where I have installed all required fonts and still get the '#' characters in PDF. 

In above XML code the unicode is converted to the original language. I used this UNICODE-

Maybe that can be a good enhancement to this plugin. 
* xmlgraphics.apache.org/.../configuration.html (at the bottom it mentions "Relative URIs for those properties are evaluated relative to the base URI of the configuration file. If the configuration is provided programmatically, the base URI can be set with FopFactory.setUserConfigBaseURI ; default is the current working directory.")

Not to install the fonts in the OS but to let us to add a configuration File or something like that, what do you think @Mike ?

Jose