"When an Indian gives any thing, he expects to receive an equivalent, or to have his gift returned."
It's not the worst thing in the world, but it's definitely impolite to say the least. I suspect that it gets brought up at appraisal less because you used it and more because you seem unable to still understand why it may be construed as racist. A simple 'Sorry, I didn't appreciate where the term came from' may have been better than acting as though you were the offended party.
( scarpe We Stole Bikes, Thu 23 Aug 2012, 12:13, 2 replies)

I'm going to hazard a guess that he's over 50, obese, and wears jeans, a rugby shirt and a blazer to the pub.

( BraynDedd Natasha Kaplinsky's labia majora, Thu 23 Aug 2012, 12:19, closed)

It's interesting and historical, is what it is.
See also "Chinese gift exchange" which is common here in Canada.
I have a Canadian friend of Chinese parents who acknowledges that the term is racist in a quaint way (ie, that it implies that the Chinese will steal from each other) but thinks that people who complain about it are desperate to prove everyone else is a racist and are weird.
It's not the same as calling Chinese Chinks for example.

You're right though, an apology and an admittance of ignorance usually works wonders.
( Infidel , shit and wrong, Thu 23 Aug 2012, 13:00, closed)