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The following
text is an excerpt from: Wilson, Timothy. Flags at Sea.
London: her Majesty's Stationary Office, 1986. pp 24-27.

The pattern
of the Union Flag and Jack generally adopted in the late 17th
century and until 1801 was the pattern ordained in 1606. There
is, however, tantalising evidence of experiments in the 1660s
with a version of the flag that foreshadowed the modern pattern
by including a red saltire to represent Ireland within the
white saltire of Scotland.
In the
Restoration navy (1660s) the officers of a fleet held office
by appointment only, not by rank: that is, they were appointed
not to the permanent rank of, say, vice admiral, but to the
temporary appointment of vice admiral of the blue squadron;
after the fleet in question had finished its appointed task,
the officer ceased to be a vice admiral, and he could not
fly a flag in his own right.
Commanders
of expeditions were often given permission to fly special
flags: for example, officers commanding squadrons in the Mediterranean
or West Indies were regularly authorised to fly a Union Flag
at the main as long as they were outside home waters. There
were also special pennants for officers not authorised to
fly a full flag: a red pennant with St George's cross at the
hoist but broader than the ordinary warship pennant, was allotted
in 1674 to the officer commanding in the Downs (off the east
coast of Lent); and a pennant called 'Budgee pennant', a red
broad pennant with the Union at the hoist was used in the
1690s by Officers commanding outside home waters. Out of these
special pennants developed the plain red and blue broad pennants
used by commodores - a title which dates in the Royal Navy
from about 1690 - seen in paintings of 18th century actions.
After
the Third Dutch War the Royal Navy stopped fighting the Dutch
and at the end of the century the main enemy was the French.
The plain white admiral's flag and the white ensign were easily
confused with the white flags used by the French navy; accordingly,
in 1702, the white flag of flag officers of the white squadron
was replaced by a flag of St George throughout. In 1707, following
the Act of Union, the Union replaced the cross of St George
in the canton of the ensigns, though not in the masthead pennants.
In 18th century ensigns the union in the canton tended to
occupy a quarter of the area of the ensign, or a little less,
in contrast to the earlier ensigns with St George's cross,
in which the canton was generally a good deal smaller. Between
1707 and 1801 there was no important change in the design
of the main command flags and colours of the British Navy.
Some of the regulations on the use of flags in the navy were
laid down in the Regulations and Instructions Relating
to His Majesty's Service at Sea. (1731).
The colours
of an 18th century British warship were thus: the ensign,
of the squadronal colour, or red if an independent command;
the jack, which, following changes in rig around the 1720s,
ceased to be worn at sea and since then has generally been
hoisted only in harbour, and the pennant, sometimes with its
fly on the colour of the ensign, otherwise striped lengthwise
red, white and blue. Since the 1720s the pennant has been
the permanent distinguishing mark of a warship, kept flying
all the time unless struck on the hoisting of a command flag
or a broad pennant. It has never been obligatory to wear an
ensign all the time at sea.
As the
Royal Navy's responsibilities in defending and extending a
world-wide empire grew in the 18th century, the 17th century
organisation into a single enormous fleet with nine flag officers
commanding nine squadrons was abandoned. Instead of being
appointed to a temporary job in a particular fleet, officers
obtained permanent tenure of rank and, once appointed to a
flag, gained promotion by moving up the list as those above
them died off. Up to 1743, the total number of active flag
officers at any time was limited to nine; after that year
the restriction was lifted, so that several admirals, vice
admirals and rear admirals of each colour could exist, and
the number of flag officers grew rapidly. The ladder of promotion
incorporated squadronal colours: a man would normally receive
his flag as rear admiral of the blue and advance through rear
admiral of the white, rear admiral of the red, vice admiral
of the blue, vice admiral of the white, vice admiral of the
red, admiral of the blue and admiral of the white, until finally,
if he lived long enough, he reached the rank of Admiral of
the Fleet.
While
a rear admiral he flew his flag at the mizzen; while a vice
admiral, at the fore; and when he became a full admiral, at
the main. The Admiral of the Fleet flew the Union at the main.
The system was extremely inflexible in that it was impossible
to overtake those above you on the list; but this did not
stop the Admiralty appointing a man from well down the list
to command a squadron or a fleet if he was felt to be 'the
best man for the job'. However, no flag officer could be placed
under the orders of someone blow him on the list. The longer
one had one's commission, the higher one was up the list.
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