"Chink" is a word that can be used offensively, and it's more offensive in some places than others, and in some social contexts. In my part of the world, as I said I'd rate it more offensive than Jerry, less so than Kraut, and about the same as Frog. I wouldn't myself be likely to use any of those words.

The quotes - yes the suggestion is he pisses himslef and puts the bomb out. Or alternatively that he uses his ingenuity and improvises in a crisis. In either case, no insult need be assumed. Bloody scary things, incendiary bombs. No shame is being frightened of them, and people in wartime Britain knew that. It's the kind of joke any one in that context might have made - compare it with Guarding the Home Guard Home, where the hero who runs like hell when the Germans appear is George hmself.

As for the other one, I think you misinterpret a double entendre. George Formby went in for a lot of them, not very subtle ones either. And you've got to remember, this is the middle of the war, the Chinese are allies. Suiggesting that a Chinese bloke who has been the hero of a sequence of popular songs, has suddenly turned into a traitor - that would have smacked of defeatism. It really is a highly unlikely interpretation.

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