Actually, HD, the flag started to come off even before the livery changed, so it was hardly an integral part of the then-design. In fact, the Swire Group logo was larger in size than the Union Jack.
And just in case you doubt my "fertile mind", please check out the various shots of Tristars and 747-200s at
this site and you will see how the Union Jack disappeared on the older livery as 1997 came closer.
It was, if you were around at the time, a significant topic in Hong Kong then.