As I pointed out, the use of the word hunky during the Civil War era is in print.
The trouble with the Huncho dory story is that the use of hunky dory in print goes back to 1866, many years before Seebees hit Japan and the Pacific, so that part of the Dictionary of Word Phrases--- is nonsense. This work has much unsupported speculation.

Now the opening of Japan is another story, but as I understand the history, sailors were not permitted shore leave on Peary's landing. This one will send me to my history books, however, as its occurrence is only 12 years before the word started to appear in print. Just speculation at this point, since the existence of such a street in the area of cheap prostitutes would have to be proven, and the question of shore leave in the period 1854-1866 needs to be answered. Remember, the equivalent of Shinbone Alley in Japanese ports would have to be after visits by sailors started to become a regular occurrence. The "floating world" of the Japanese and the geisha would have been closed to them.