http://en.wikipedia.org/wiki/Fuzzy_Wuzzy
Quote:
Fuzzy-Wuzzy can refer to:
Hadendoa, an East African tribe
Fuzzy-Wuzzy, a poem by Rudyard Kipling
Fuzzy Wuzzy Angels, the name given by Australian troops to a group of Papua New Guinean people who, during World War II, assisted and escorted injured Australian troops down the Kokoda trail
Fuzzy Wuzzy (poem), a popular children's poem/tongue-twister in which a bear is thought to be fuzzy, but it turns out he's not
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Fuzzy Wuzzy was a bear
Fuzzy Wuzzy had no hair
Fuzzy Wuzzy wasn't fuzzy, was he?
So I don't know about any derogatory term unless you don't like Hadendoa or Rudyard Kipling.