In those days, fag as we used it meant effeminate, a pussy, not necessarily a homo. But most homos were fags, too.
I thought a fag always meant a homo. In terms of ‘long haired commie type pinko fags’ I think it means scrawny boys/men who wear their hair long; snowflakes & misfits, if you will; like our contemporary crop of soshal justis warrors that we have today. May or may not be literally homosexual in this case i think.