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A diplomatic flag is a flag used by states engaging in diplomacy which is different from the normal national flag.
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Contemporary usage
Currently only two states use diplomatic flags: Thailand and the United Kingdom. Different flags are used based upon the diplomatic rank of the mission. Note that British High Commissions do not use diplomatic flags but rather the normal flag of the United Kingdom as members of the Commonwealth are not considered 'foreign' by the government of the United Kingdom.
Historical diplomatic flags
The members of the union between Sweden and Norway each had their own separate national flags, however they also had a flag named the Union mark which was used as the flag of the common diplomatic representations of both countries abroad. The diplomatic flag had the proportions 4:5 of the union mark as it appeared in Swedish flags, unlike the square shape of the Norwegian version.