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We can draw a number of conclusions from this. First the only distinctively New Zealand part of the flag was the badge i.e. the letters or the stars. These flags were very much British Empire flags.
Second note that the use of the colour red precedes the use of stars and has nothing to do with the Australian flag. Why did Governor Grey require the letters NZ to be two-tone, which is much more complicated to sew, when simple white letters would have had high visibility and would have sufficed for a temporary badge? No reason suggests itself except that Grey was aware that a badge for New Zealand should have red on it to represent mana for both Maori and the Colonial Government.
The white edges (called fimbrillation) were necessary in order to make the letters or stars stand out clearly from the blue background. But they also allowed the badge to echo the colours of the Union Jack. This probably pleased the colonial patriots who, certainly in the 1800s and even up until the 1940s, considered New Zealand a new Britain and very much part of the Empire.
The Star Fern Flag is intended to be a bridge of peace between New Zealanders of different ethnicities. For someone of British ancestry (like the writer, some generations back) it is not a small thing to lose the Union Jack on the corner of the flag because it speaks of my heritage. However the loss is eased by the fact that the stars are a specific echo that flag, but brought into a South Pacific context.
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