The tip was found in VIM's help under
:help color-xterm and works for HP-UX and Solaris. I conditionally exclude Linux to be unaffected by workaround, since F/LOSS folks - compared to the Unix old farts - have managed somehow to ship decent terminfo/termcap boasting color support out of box.
if &t_Co > 0
" Linux/etc has proper terminfo
if &term =~ "xterm"
The thing needs to be put into
~/.vimrc. The '^[' needs to be replaced by real escape character - ^V<Esc>.