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Territoriality is instinctive, which means that it can't be corrected. What you CAN do, though, is change the way you approach the bird when he's in his cage (I assume that this is where the territorial behavior is taking place) so that he isn't interested in acting territorial. Change the focus of his interest and you change his attitude.
Here's a very simple technique that works beautifully on my tiels. Have some very small treats on hand. Before you stick your hand in the cage, show the bird one of these treats and feed it to him through the bars. After he's had a couple this way, open the cage, stick your hand in, and feed a couple more treats. My tiels will sometimes 'make beaks' at me while I'm doing this, but they're FAR more interested in the food than they are in defending the cage and they don't bite. Once I've softened them up with food they'll step up and come out of the cage without problems.
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