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The Union Jack and the Maple Leaf may soon fly side by side at embassies and consulates around the world, as part of a new cost-saving foreign affairs agreement between Britain and Canada, prompting concern that a hybrid diplomatic channel could weaken Canada’s global standing.

Foreign Affairs Minister John Baird and British Foreign Secretary William Hague will announce plans Monday in Ottawa to begin sharing embassy space and resources. The arrangement is being touted as a money-saving move to offset budget cuts to diplomatic missions against the desire to establish a larger presence in emerging markets such as China and India.

Paul...

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