The English Lords Justices in Council considered the question and reported:

"At the Council Chamber, Whitehall, the 31st day of July, 1701.

"Present—Their Excellencies the Lords Justices in Council.

"Upon reading this day at the Board a report from the Lords Commissioners of the Admiralty in the words following, viz.:

"Their Excellencies the Lords Justices having been pleased to refer to us a Report of the Lords Commissioners of Trade, upon a Memorial from this Board, representing the Inconveniences that do attend Merchant ships wearing the King's Colours, in and among the Plantations abroad, under Colour of the Commissions given them by His Majesty's Governours of the said Plantations. We do most humbly report to their Excellencies that we do agree with the said Lords Commissioners for Trade that all such ships to whom the aforesaid Governours shall, by the Authority Lodged in them, grant Commissions, ought to wear colours that may distinguish them from private ships, as is done by those employed by the Officers of the Navy, Ordnance Victualling, and others, and therefore do humbly propose that all the said Governours may be directed to oblige the Commanders of such Merchant ships, to which they grant Commissions, to wear no other Jack than that hereafter mentioned, namely, that worne by His Majesty's ships with the Distinction of a White Escutcheon in the middle thereof, and that said mark of Distinction may extend itself to one-half of the depth of the Jack, and one-third part of the Fly thereof, according to the sample hereunto annexed.

"Pembroke. "Haversham. "D. Mitchell."

Directions were accordingly so issued, and of the instructions transmitted to the governors of the colonies in America originals are extant of those sent to Massachusetts, in 1701, and New York, in 1709. Fig. 56 is from an actual tracing from the drawing of the flag on the margin of the instructions sent to the Governor at Boston.[186] It will be noted that the white escutcheon on the Jack is perfectly plain and without any special distinctive emblem, such as those worn on the escutcheons on the ordnance and other departmental flags.

The white escutcheon of the home departmental flags was thus extended to the Union Jacks used in the colonies, and formed the new and first "colonial flag" (Pl. [III.], fig. 3).

The Governors, High Commissioners or Administrators of British colonies and dependencies were afterwards authorized to place upon this white escutcheon on the Union Jack the arms or emblem of the colony in which they served. In this way it has come that the arms of Canada, the southern cross constellation of Victoria, the red cross and British lion of New South Wales, the black swan of Western Australia (67), and the other special distinctive emblems in each of the British colonies are now displayed upon the centre of the Union Jacks which form the Governor's flag in each.