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On July 5, 1975, the first national flag of Cabo Verde (Cape Verde) was hoisted; it was confirmed by law on April 19, 1976. The basic design was derived from the flag of the African Party for the Independence of Guinea-Bissau and Cabo Verde (PAIGC), adopted in August 1961. Designed to represent both Cabo Verde and Guinea-Bissau after their liberation from Portuguese colonial rule, the flag incorporated the pan-African red-yellow-green and a black star to symbolize the African peoples and their hope for dignity, liberty, and peace. The vertical red stripe at the hoist represented the blood of national heroes and the revolutionary struggle for development. The yellow horizontal stripe was for national well-being and culture, and the green horizontal stripe was for hope and agriculture. (See also Guinea-Bissau, flag of.) When Cabo Verde became independent, the black star was framed by ears of corn and a seashell.

In free elections in 1991 the Movement for Democracy defeated the ruling party. To symbolize the break with the socialist and pan-Africanist policies, a new national flag was established. It had a blue field and stripes bearing a ring of 10 yellow stars to symbolize the 10 main islands of Cabo Verde in the Atlantic Ocean. The horizontal stripes of white-red-white suggested peace and national resolve on the pathway to nation building. The colours red, white, and blue were a link to Portugal and the United States, countries with which Cabo Verde has strong historical and ethnic ties. The new flag became official on September 25, 1992, reflecting the new future chosen by the country.