In 1603, James VI of Scotland inherited the English and Irish thrones (as James I), thereby uniting the crowns of England, Scotland and Ireland in a personal union (which remained separate states). On 12 April 1606, a new flag to represent this regal union between England and Scotland was specified in a royal decree, according to which the flag of England (a red cross on a white background, known as St. George's Cross), and the flag of Scotland (a white saltire on a blue background, known as the Saltire or St. Andrew's Cross), would be joined together,forming the flag of Great Britain and first union flag:
http://en.wikipedia.org/wiki/Union_Flag
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