German WW2 Balkenkreuz flag or banner

[NH4012]

I've been asked to sell a lot of captured German souvenirs including the "flag" shown in photo. This item was obviously not intended to be flown outdoors and was probably intended to be wall hung as it includes 4 corner brass grommets. It measures about 77" by 36" and appears to be cotton with the white circle sewn onto the background and the cross silk-screened onto the circle. I'm confident of the age and authenticity of the other items in the lot but cannot establish the age or significance of this item so any input will appreciated. The items were all retained as a lot by a sergeant in the US Army who served in the European effort at the end of the war in Europe. They've been maintained as a lot by the family since then. Included with the flag are some armbands, uncanceled postage stamps, pins, a German's internal passport from the time, and an official stamp of brass with a wooden handle which appears to have been used to stamp official documents by German authorities during the war years or shortly before.

[paloeser]

See:http://crwflags.com/fotw/flags/ufe02.html#02-6 and http://crwflags.com/fotw/flags/de!balke.html for information about this "German Vehicle Recognition Drape."