I stumbled over this passage in the Django tutorial:
Django models have a default str() method that calls unicode()
Meanwhile, I did a refined research to verify what the internal representation in Python is, and also what its limits are. "The Truth About Unicode In Python" is a very good article which cites directly from the Python developers. Apparently, internal representation is either UCS-2 or UCS-4 depending on a compile-time switch. So Jon, it's not UTF-16, but your answer put me on the right track anyway, thanks.