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If the security team does not understand TELNET-SSL but want to use SSH (because this is what they know), they should update their knowledge.
For sure one can use SSH to connect to a server and then run a TN5250 LOCALHOST - but this is not very user friendly.
Implementing TELNET via SSH in the ACS product might produce additional work as there is more than one port / application to handle.
I understand the question but properly securing SSH is already a nightmare... all kinds of different "protocols" over the same port.
TELNET SSL works fine... educated your auditors, it tells more about the auditors than TELNET SSL if they don't understand it.
Have you tried installing TN5250 emulator and configure your SSH session?