Principality of Monaco

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Flag of Monaco Two equal horizontal bands of red (top) and white; similar to the flag of Indonesia which is longer and the flag of Poland which is white (top) and red.

The Genoese built a fortress on the site of present-day Monaco in 1215. The current ruling Grimaldi family secured control in the late 13th century, and a principality was established in 1338. Economic development was spurred in the late 19th century with a railroad linkup to France and the opening of a casino. Since then, the principality's mild climate, splendid scenery, and gambling facilities have made Monaco world famous as a tourist and recreation center. - CIA World Factbook.

Monaco Guide
Though the Principality covers but one square mile, it stands as a proud monarchy with his Serene Highness Prince Rainier III as its head of state.
www.cityofmonaco.com/monaco/index.html

Monaco - Fotw
The Principality of Monaco is the second smallest sovereign state in the world.
www.fotw.us/flags/mc.html

Monaco - wikipedia.org
Monaco is the world's most densely populated country and second-smallest independent nation.
en.wikipedia.org/wiki/Monaco

Monaco - U.S. Department of State
        The Principality of Monaco is the second-smallest independent state in the world, after the Holy See (Vatican City). It is located on the Mediterranean coast, 18 kilometers (11 mi.) east of Nice, France, and is surrounded on three sides by France. Monaco is divided into four sections: Monaco-Ville, the old city on a rocky promontory extending into the Mediterranean; La Condamine, the section along the port; Monte-Carlo, the principal residential and resort area; and Fontvieille, a newly constructed area reclaimed from the sea.
        French is the official language; English, Italian, and Monegasque (a blend of French and Italian) also are spoken. The literacy rate is 99%. Roman Catholicism is the official religion, with freedom of other religions guaranteed by the constitution.
www.state.gov/r/pa/ei/bgn/3397.htm