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In Aussie slang to call someone "Blue" or "Bluey" means they've got red hair. In the early European migration days (convict days) a lot of those people were of Celtic origin with a significant proportiion of redheads. So to call someone "True Blue" means that they could trace their origins back to a convict arrival. It's close to the best compliment that you can give to an Aussie.
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