Australians are NOT racist!

I'm sure most people have seen or heard of the clip for 'the Jackson Jive' on Hey Hey and I just want to say that I am an Australian, I dont think of myself as racist and I did like MJ but I dont think that the skit was racist. The only reason that anybody finds it offensive and anyone out of Australia or that didnt see the show know about it is because Harry Connick Jnr overreacted. I dont see how he can lable us as racist and say that American have tried hard not to make black people look like 'baffoons' when he done a similar thing a few years ago.
They done it as a tribute to MJ, they didnt do it to make fun of him or any other black person. They done the same act 20 years ago when it was probably worse to do something like that than it is now and they won the segment!
The six guys that were in the group are also all from different nationalities.
If I was in that position though I would have apologize because it was the right thing to do no matter what my opinion on the issue was, but as soon as I found out that Harry done a similar thing I would have taken back the apology and told him that he needs to grow up and get over it.
I'm not saying that it wasnt racist, but I am saying that in my opinion, it wasnt.
And he did bring the show and MY country to 'a down level' by making us all seem like racists, which we're not, we have so many different cultures living here. And unlike Harry and other Americans, we dont seperate anyone here by labeling others 'Black Australians' or 'White Australians' or even 'Yellow Australians', we're just Australians.
I don't mean to offend anybody with this, it is just simply MY OPINION.

What's your opinion? Are Australian's racist? or did he just overreact?