I am not sure what you mean by separate templates, I think you need just one template. This is how I would do it:
1)in your xml document link a xsl document:
<?xml-stylesheet type="text/xsl" href="myxsldoc.xsl"?>
Also the Type:"Locale" confused me and i wasn't sure what your output tags were doing so i rewrote the xml to:
<?xml version="1.0" encoding="UTF-8"?>
<?xml-stylesheet type="text/xsl" href="myxsldoc.xsl"?>
<output>
<Country>
<Name>United Kingdom</Name>
<Size>
3
</Size>
<Population>
500
</Population>
</Country>
<Country>
<Name>Ireland</Name>
<Size>
2
</Size>
<Population>
300
</Population>
</Country>
</output>
2)the xsl file for this, to do what you want as i understand it is:
(sort select can be changed to order on different things