I'm an Australian but have been living in the UK for the past 12 years, so I can see both sides of this. I lived through the TV/media time where "wog" was reclaimed for first, Greek-Australiana, and then to other Mediterranean-Australians, as some of the other posters have noted.
In the UK, the term means people of black African or black Caribbean origin and I believe comes from (what is now considered) the highly offensive "golliwog" iconography, and is wrapped up witb negative stereotypes, slavery etc. It is a really offensive term in the UK, and after a decade of living in the UK my ear has re-tuned itself to not be able to tolerate it, to the point when discussing it with a Brit friend I would probably say "the-W word". It's as about as offensive as you can get.
In Australia, we had a period of TV shows and musicals like Wogs Out Of Work and Wogarama in the late 80s/early 90s, and certainly at the time it was successful in reclaiming the word, in a similar way that the gay community has turned "queer" around to be positive in some circunstances, and to an extent, black communities use the n-word in some popular culture contexts. For all these words, they can be used negatively or positively. For example, I am a gay man and if someone yelled queer or f*g at me from a car as they drove past, it would be offensive, but if a gay friend said he was going to a queer event or that a club was "full of f*gs", then that would be ok. The same if in Austrlia a Greek Australian said he was going to a big wog wedding, that would be ok, but if someone used it as part of an insult it would still be highly offensive. The same way Kanye West can use the n-word in a song but it's not good from a right wing white extremist group... you get my drift.
Out of interest, I'm on holidays on Mykonos at the moment (we randomly went to the bay where it was filmed, Fokos bay) and there are HEAPS of Greek Australians here...
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