The film was certainly not pro-Japan as I heard it was earlier, but it seemed to over emphasize the anti AMerican Indian sentiment.
We DID call any Marine who was an Indian, CHIEF, but it was always a nickname of respect, like an unwritten rule, but we never called his women squaw.
Get caught crossing your arms more than once... and someone will call you chief.
Only time I ever hear of this is from people who weren't alive at the time. The Indian wars ended 50 years earlier. Some Generals such as MacArthur had living memory of the Indian Wars while growing up on a West Texas outpost. Not even MacArthur made any negative mention of Indians in his book "Reminiscences".