"Hispanic" and "Latino" are not racial or ethnic designations. Spaniards are as "white" as any other European, and a substantial proportion of the population (particularly the upper and middle classes) of most Latin American countries are mostly if not entirely of European ancestry.
When the La Raza and Aztlan agitators use the word "Hispanic" or "Latino" in terms of racial identity, what they really mean is Mestizo or Indio, i.e. a Spanish (or Spanglish) speaker of mostly American Indian ancestry.