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Red flags in Bosnia

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It appears that in Bosnia a red flag means 'go', both during shunting operations and when trains are passing stations. See for example http://www.youtube.com/watch?v=1rnaTbtjZh8. Bosnian railway practice is presumably much the same as the rest of former Yugoslavia.

Does anyone know anything about this? Questions that occur to me are:

What is the origin of this?

Do any other countries do the same?

What do they use for 'stop'?

Does a red flag really mean 'all clear', or does it actually mean 'caution', or perhaps 'pay attention' with the exact meaning conveyed by what is done with the flag?
 
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