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For the following script
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import xmlrpc.client; from xmlrpc.client import escape
text = "...\u043c......<"
print(escape(text))
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Python 3.3.0b1 produces
...ь..&lt;...<
whereas Python 3.2
...ь......&lt;

Hum, it's a regression introduced by the super-optimized fastsearch. It is just a typo: _s => s. I renamed _s to ptr to avoid future confusion ;-)
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For your information, str.find(), str.rfind(), str.index(), str.rindex() and str.replace() are now using memchr() and memrchr() to find a substring, even if the substring contains characters outside the ASCII (U+0000-U+007F) and latin1 ranges (U+0000-U+00FF). memchr() and memrchr() are much faster than a dummy C loop, even if there are false positive.

Ow, nice find.

New changeset 0e95b61af859 by Victor Stinner in branch 'default':
Close #15534: Fix a typo in the fast search function of the string library (_s => s)
http://hg.python.org/cpython/rev/0e95b61af859 

The issue should be fixed, thanks for the report!