Encoding and Fileencoding of a latin1 file

I've written this in my _vimrc file

if has("multi_byte")
if &termencoding == ""
let &termencoding = &encoding
endif
set encoding=utf-8
set fileencoding=utf-8
set fileencodings=ucs-bom,utf-8,latin1
endif

When I open a latin1 file in my editor VIM indicates [CONVERTED] after the file name under the statusline.

Fileencoding has been converted to Latin1. Correct. The file will be saved in Latin1.
But my problem is that the Encoding is still in UTF-8: I see many squares in the latin1 file.

1) Why doesn't Vim also let me read the file in Latin1 (changes the encoding to latin1)?

To temporary resolve this problem I set the encoding manually to Latin1
:setlocal enc=latin1 | :e

But I noted that it changes the global encoding to Latin1 and now I see UTF-8 files in other tabs in the wrong Latin1 encoding.

2) How can I set encoding only to the local buffer?

What did I wrong?



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