The Welsh Nation has been using the Red Dragon standard for centuries,in fact, well before other neighbouring nations such as England ever came into existence. It is belived to have been introduced in the British Islands by the invading Roman troops and was supposed to be the personal banner of the real life Briton chieftan that defended his country against the Anglo-Saxon heathens, later to be transformed into the Arthurian legends.
Many early medieval poems in Welsh vernacular described the nation as "The Dragon" and it's interesting to note that the word "draig" (Welsh for dragon) also means "leader".
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