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Embassies must obtain permission from the State Department before wearing a flag other than the American flag on their main masts.
At the US Embassy in Berlin, which was one of the places to which permission was denied this year, the rainbow flag in June was previously simply "a routine thing that happens every year, "said a source.
"It's still accepted," said the source, adding that the embassy had asked to fly the flag during City Pride Week, at the end of June.
But this year, "an email was sent by the State Management Office, stating no, refused," the source told CNN.
The ambassador to this embassy, Richard Grenell, is gay and defends the rights of the LBGTQ in the world. He added that they would "hang a huge banner on the side of the embassy" and would hold many events during the month of pride.
In a statement to CNN that resembles a diplomatic reprimand of what appears to be a new policy, Mr. Grenell said: "The President's recognition of the month of pride and his tweet encouraging our decriminalization campaign gives me even more Pride for a new march in Berlin Pride parade, hang a huge banner on the side of the embassy recognizing our pride, organize many events at the Embassy and the residence and sport the flag of gay pride. "
When asked if Grenell was unhappy about not being allowed to fly the flag of the mast, the state department source responded with a categorical "yes".
"It now takes basically, OK, then we will do it inside the embassy, we will do it through the window, we will do it from the balcony and everywhere else," said the person.
The State Department did not respond to a request for comment.
Jennifer Hansler from CNN contributed to this report.
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