Yes, I do get all that, and that it is meant to be in jest and actually making fun of Fawlty. I also can't fully appreciate the context... for instance in the U

Yes, I do get all that, and that it is meant to be in jest and actually making fun of Fawlty. I also can't fully appreciate the context... for instance in the UK I've heard it was common in the 50s and 60s for the N word and it's variants to be used but weren't meant to be derogatory (still having a hard time with that one). However, in Fawlty Towers there was a lot of use of several racial epithets, and Miguel's character seemed overtly racist in portraying a clumsy/clueless Hispanic much in the same way as Blacks being portrayed as overly cheerful willing servants in other shows from the past.