The Personal Side of Bias, Prejudice, and Oppression

Last week I observed the following conversation take place between a white person and a person with brown skin:
P1 - "Are you from Mexico?"
P2 - "No, I'm from Utah"
P1 - "But where you born in Mexico?"
P2 - "No, I was born in Utah"
P1 - "Well are your parents from Mexico?"
P2 - "No"
P1 - "Well where are your parents from then?"
P2 - "My mother is from Utah. My father is from _____(some other country but I can't remember what was said)"
P1 - "Do you speak Spanish then?"
P2 - "No"
P1 - "Do your parents speak Spanish?"
P2 - "No, my mom only speaks English and my dad speaks ____ (can't remember what language he said)"
P1 - "Well why did you go to Mexico then?"
P2 - "I always wanted to visit there."

I believe in this conversation P1 is making an assumption based on a small piece of knowledge, he knew P2 had just visited Mexico, and based on the color of skin.  This conversation may have began by just being a simple conversation, but leaves room for discrimination and prejudice towards P2.  I believe P1 put himself in a position of power, diminishing equity, by making an assumption based on the outward appearance of someone.  It didn't seem at all that P1 was uncomfortable with the conversation, but it did seem like it made P2 uncomfortable with the conversation.  As an bystander to this conversation, it made me uncomfortable and I was a little at awe.  Someone else actually jumped in and changed the conversation to be a little more appropriate. 

I think there are several things that could have changed this conversation to bring about better equity.  First, I think P1 didn't have the slightest idea that what he was saying could have been hurtful.  I think the way he was talking, the tone he was using, and to some extent the words he actually said put him in a position of power and authority and talking that way to anyone could have made them back down.  It was almost as if he was giving a silent message saying that he was better than him because he was white and from America and anyone who was different was not good.  Second, I think as a bystander I could have done more or something sooner to try to change the conversation or ask more details about his family and culture and highlighting the good and exciting pieces of that. I felt uncomfortable in a way that I wasn't sure how to respond or react, and to some extent, as a female bystander to a conversation between two men, I also felt that I didn't have the power or right to step into that conversation. The person who did change the conversation was another male.  I am not sure why I really felt that way, but it made it difficult for me to intervene.