Having washed all over, greeting American (7)

I believe the answer is:

chilean

'american' is the definition.
(Chilean is an example)

I don't understand the rest of the clue.

(Other definitions for chilean that I've seen before include "Nationality of citizen of Santiago" , "foreign character" , "From Santiago, say?" , "from South American country" , "From e.g. Valparaiso" .)

I've seen this clue in The Guardian.

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