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In Canada, it is a derogatory term for First Nations people, a people who lied before the whites came, took their land, brainwashed them into Christianity, made them second-class citizens, and forced them onto reserves. Although the word used to be quite polite, it has gone the way of the word "negro" and has become a highly offensive term. A much less offensive term is native, and is the term of preference if you talk to someone of that culture without offending them.
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