Since the XSLT file is an XML file, you cannot include that character reference. I don't think you can do this in a pure XSLT solution.
The ASCII character HEX 10/DEC 16 is the Data Link Escape (DLE) control character.
The XML Spec only allows the three whitespace(tab, carriage return, line feed) control characters.
Legal characters are tab, carriage
return, line feed, and the legal
characters of Unicode and ISO/IEC
10646.
Everything else under 0x20 is not allowed.
Character Range 2 Char ::=
#x9 | #xA | #xD | [#x20-#xD7FF] |
[#xE000-#xFFFD] |
[#x10000-#x10FFFF] /* any Unicode
character, excluding the surrogate
blocks, FFFE, and FFFF. */
One option is to put a placeholder token value for that character in your output, and then use an external process to find/replace your token with the character.