To resolve this issue, add a text encoding tag for UTF-8 on the first line of the HTML page. This will tell QuarkXPress to convert all the characters to UTF-8 format. The tag should be formatted as follows:

<HTML><meta content='text/html; charset=UTF-8'>

Background:
When importing HTML into a QuarkXPress layout, the HTML needs to have a line in it that declares the encoding method used in the HTML file. If you are importing text that contains international or accented glyphs you need a tag at the beginning of the HTML that states the file uses UTF-8 encoding. If you are importing HTML that is Unicode encoded, you need to declare the HTML as UTF-16.