"Harry wasn't using a nickname, he was using a term based on his skin colour and ethnic origin."

Now could you explain that Stigweard/Sugarfoot Jack??

Oh, by the bye Jim the plural of 'Paki' would be 'Pakis' - no 'e' - Coming from a shortening of the name of the country Pakistan.

Which brings me back to Sugarfoot's remark - "ethnic" origin - WTF were they called before 1947 Jack?? I ask because that was when Pakistan came into being - name didn't exist before then. "Skin colour" what is being referred to is where the person, who by now we have clearly established took no offence at the remark, comes from - exactly the same as 'Jock', 'Taffy', 'Paddy', 'Yank', 'Yarpy', 'Frog', etc.

As to use of such terms in the services have a listen to the introduction on Shep Woolleys, "Norman Docherty and the Chinese Rock & Roll Band" - absolutely hilarious and I would find it very hard to believe that anyone would take offence at it, particulary the main character who did exist in real life.