I got this in a market while visiting New Zealand from the grandson of a New Zealand WWII POW. I talked with one of the vendors there and he told me his grandfather had fought in WWII, and been captured as a POW in Northern Africa in 1942. I expressed interest towards his grandfathers story and asked if he had anything from him he might be willing to sell. He told that he had a flag at home, and when he came back the next week he brought this.
He didn't want to mention many specifics about his grandfather, who passed away decades ago, so unfortunately I don't know any more about his story. However he did tell me that he remembered seeing this flag since he was a kid, and that when he was young he had been told it was from the war. The flag measures roughly 2x3 feet and is made of cotton. The flag does NOT glow in black light and is hand made. Let me know if you have any questions!