In "The Flag and Further Snags" when they collect the wrapped flag from the station, they head to the cafe where the string is attached to Compo's trousers, so he borrows a knife and pops out to the gents to cut the string, it seems on his return and for the rest of the show it is not seen again until the very end flying on the flagpole, so it's odd after all the fuss that Foggy never mentions anything when Compo returns about the flag.