No, he means you shouldn't refer to it as an indian. You should simply call it a native american instead. Its just a matter of political correctness, which can be forgiven where translation is involved. Its funny how political correctness varies across the Atlantic. Over here the terms black and white are still perfectly acceptable, whereas in the US you have to say african-american or caucasian respectively. Feel free to paint as many native american as you like, any colour you like. No-one will take offense as long as you call them native americans!