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<?xml version="1.0" encoding="UTF-8"?>
<log>
...
<msg>This is my SVN message with characters like ä or &amp;.</msg>
</logentry>
</log>

use XML::Smart;

...
my $test = XML::Smart->new($logString);
$test->{log}->{logentry}[0]->{msg}->set_binary('FALSE');
print $test->data();

<?xml version="1.0" encoding="UTF-8" ?>
<?meta name="GENERATOR" content="XML::Smart/1.78 Perl/5.024001 [MSWin3
+2]" ?>
...
    <msg dt:dt="binary.base64">VGhpcyBpcyBteSBTVk4gbWVzc2FnZSB3aXRoIGN
+oYXJhY3RlcnMgbGlrZSDkIG9yICYu</msg>
  </logentry>
</log>

    <msg>This is my SVN message with characters like ä or &.</msg>