Give drugs to banish cold and help settle (7)

I believe the answer is:

mediate

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'help settle' is the definition.
(I've seen this in another clue)

I don't understand how the rest of the clue works.

(Other definitions for mediate that I've seen before include "try to resolve dispute" , "To referee" , "Act as middle man" , "Help settle a dispute" , "Intervene, act as go-between" .)

I've seen this clue in The Sun and The Telegraph.

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