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In
1869 the Admiralty directed that naval vessels in colonial waters should wear
the Union Flag distinguished by the appropriate colonial badge when embarking
the Governor. There was at the time no colonial badge for New Zealand.
Accordingly the decision was made to use a white disc bearing the red
“NZ” badge which was simultaneously adopted for the Blue Ensign.
In 1874 Governor Sir James Fergusson Bt. changed the white badge to show the Southern Cross as
represented by four five-pointed red stars, with the monogram "NZ"
in red letters in the centre. The badge was surrounded by a laurel leaf
garland. Subsequent Governors used the flag on shore, and it became the
official vice-regal flag
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