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In my country "fag" means cigarette.

I would be willing to bet that there have been numerous cases where Americans and various other folk who have come to England and heard us using the word fag frequently and have been extremely shocked. But that word flies here.

Things are all about perspective.

...

It's like Portuguese and Brazilian people, when I first heard a Portuguese speaker use the word "nigger" I was shocked. But the case is that the word to them is simply an adapted use of "negro" their word for the colour black. They don't neccessarily see the negative connotations that English speaking people do.