The flag is unusual for a British colony in that it is a red ensign, rather than a blue ensign, as is traditional for use by governments. However red ensigns were used by both Canada (pre-1965) and the Union of South Africa (1870-1905 Natal only) as their flags. The Governor of Bermuda uses a Union Flag defaced with the coat of arms, a design traditional for Governors of the British overseas territories. [More info]
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