I'm not sure if you really need that file, I might be that it is not available if you installed the machine without network.
CDE needs proper name resolution and the standard order after a fresh installation is DNS -> /etc/hosts -> NIS/NIS+
So if your system is not yet registered in the DNS, the hostname cannot be resolved and CDE does not start. So you have to switch this order to /etc/hosts -> DNS -> [...]. You can use sam for that in single user mode.
Go to "Networking and Communications" -> "Name Service Switch" and then see the order at "hosts". First source should be "/etc/hosts".


If you're on the console (ITE) or on an HP terminal this is because "ASCII 8 bit mode" is enabled. You can turn it off in the setup menu, which you can access through the function keys:

- Press Numlock
-> the yellow boxes on the bottom of screen change their description
- F8 config keys
- F5 terminal config
- go with TAB to "ASCII 8 Bits"
- set with F2 to "Yes"
- save with F1