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The same point could be made about democrats / Democrats, I'm sure.
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Not really. The point is England is not a republic although it is a democracy.
The point was that no true republican would accept an honour from a British monarch. eg. George Washington accepting a knighthood from King George III.
"I pledge allegiance to the flag and to the republic for which it stands ... "
The motto of the KBE Knights of the Order of the British Empire is ...
'For God and the Empire'.
Bush I and Reagan are honourary Knights of the Order of the Bath, which entitle them to the designation GCB, rather than KBE.