Green’s Dictionary of Slang

skibby n.

also skibbee, skippy
[Jap. sukibei, randy or lecherous; the word had also meant a courtesan, and the sense was extended to mean ‘loose’ or ‘unchaste’. In US use it tended to refer to a female domestic servant, but the seeming synonymity of the term skivvy, also a maid of all work, may be coincidental]
(US)

1. (also skivvy) an East Asian prostitute; thus, when addressing a Japanese speaker, any prostitute; also attrib.

[US] (ref. to 1910) DN V 84: Skibby. [...] Is said to have been used ten years ago only for Japanese women of ill repute.
[US]Wentworth & Flexner DAS 480/2: skibby n. A Japanese or sometimes Chinese prostitute or mistress, esp. one consorting with Occidental men Some ca.1910 Northwest US use. Fairly common WWII use by Army, USN and Air Force men stationed in the Orient.
[US]S. Morgan Homeboy 23: Dozo! Ichiban! Hairu suguni! Skippy show!

2. a derog. term for a Japanese person.

[US] DN V 84: Skibby. A rough name for a Japanese.
[US]W.R. Morse ‘Stanford Expressions’ in AS II:6 278: skibby—Japanese and Chinese.
[US]Howsley Argot: Dict. of Und. Sl. 46: skibbee – A Jap.
[US]D. Runyon N.Y. Daily Mirror n.p.: The fact that the Japanese considered skibby particularly odious naturally increased the popularity of the word among the Jap-hating Californians.
[US] in DARE.
[US]H. Rawson Dict. of Invective (1991) 357: skibby. A Japanese, especially on the U.S. West Coast.