... I understand why there was a need a need to distinguish between commercial underwater work and recreational divers. Thus the red/white in California and then the rest of the USA. Why did the rest of the world stay with the blue/white? Is there another flag that indicates UW operations in the US?...
I think it is fair to say that it is pretty complicated. Getting all maritime nations to agree on anything isn't easy. If I remember Navy boot camp correctly, signal flags can also be used in combination for a different meaning than when used alone. As I understand it, the world's navies developed the flag system before the days of the "Marconi" (radio) to coordinate ship movement. It continued to be used to maintain radio silence and because the early radios were less than reliable.
@Bob DBF can probably explain it a lot better, he was on the bridge in the blue-water black-shoe Navy... and correct me where I'm off in the weeds. Meanwhile, this might help: U.S. Navy Signal Flags
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Do commercial diving ops have another flag?
It isn't so much that commercial and military diving needs a separate flag rather than the red & white flag isn't an official international maritime standard and the Alfa flag also communicates restricted ship movement.
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