TERM=xterm-256color but emacs=8color

[kj]

On my Debian Linux system I have the file

  /usr/share/terminfo/x/xterm-256color

so I set TERM=xterm-256color and invoked emacs -nw, but when I
executed (list-colors-display) only 8 colors are shown.  What am
I doing wrong?

Thanks!

kj

P.S. I'm aware of the option of running emacs under X11, but I'm
trying to troubleshoot the color problem with emacs -nw.
-- 
NOTE: In my address everything before the first period is backwards;
and the last period, and everything after it, should be discarded.