ftp.exe does not convert end of line characters while transferring to FreeBSD ftp server

I am having problems transferring a text file from Windows 7 using ftp.exe to a FreeBSD server. After the file transfer the end-of-line characters are not changed from \r\n to \n, Instead they remain with the carriage return character which can be seen in for example mcedit as ^M. The file is transferred in ascii mode.

Has anybody run into similar problems in the past? As far as I know using the ascii mode during FTP transfer should convert those characters automatically. Does it depend on the server configuration?

EDIT: The file can be seen here.

EDIT: I have also tried with ncftp.exe under Cygwin but the result is the same. The carriage return character has not been removed even if the transfer type was ASCII.

EDIT: It does not work the other way round either. I created a text file in FreeBSD and then downloaded it is ASCII mode to my Windows machine. The end of line characters remained LF as they were in FreeBSD.

EDIT: The lit stat returns

211-FTP server status:
 Connected to 160.135.126.21
 Logged in as user
 TYPE: ASCII
 No session bandwidth limit
 Session timeout in seconds is 320
 Control connection is plain text
 Data connections will be plain text
 At session startup, client count was 9
 vsFTPd 2.3.4 - secure, fast, stable
211 End of status