"In 1988, Smith caused considerable controversy after making derogatory comments about black people to author Dave Hill while being interviewed in the Adelphi Hotel in Liverpool for a book Hill was writing about black Liverpool F.C player John Barnes. Smith was uncomplimentary about Howard Gayle, a black former Liverpool player with whom Smith had been at the club in the 1970s while the striker was a youth team player, saying that: "Howard suffered from a black man's attitude towards the white man. See, everybody thinks whites have an attitude towards blacks. In reality it's blacks who have a problem with the whites".[5]
Smith later added that in order to gain his respect and friendship, "coloured" people have to learn to "think like the white man" and that he later grew to like Gayle, remarking that "I used to call Howard the 'White Nigger'. Now that is a compliment. It was the only way I could find to describe that I thought he was OK." Smith then went on to comment to Hill that "I'm not prejudiced but if a coon moved in next door, I'd move, like most white people would. If my daughter came home with a nigger, I'd go mad. But I'm only being truthful and normal." "
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