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Before the formation of UTJ and the establishment of Degel HaTorah, the two factions were united under one united Agudat Yisrael party, but the late mentor and supreme guide of the non-Hasidic group, Rabbi Elazar Shach ( 1898-2001 ) broke away from the Hasidic wing when it was clear that the party was not living up to its mandate to represent all Torah Jewry.
At that point he split from them, and created the Degel HaTorah party for the " Lithuanian " Haredi Jews ( also known as " Mitnagdim " by some ).
He chose the name Degel HaTorah meaning " Flag The Torah " to be a contrast to the well-known flag of Israel and its connection with the secular-dominated State of Israel ( an " anti-Torah " entity in his opinion ).
Rabbi Shach was known as an outspoken critic of the secular Israeli way of life.

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