Honours socialists suppressing conflict (7)
I believe the answer is:
rewards
'honours' is the definition.
('reward' can be a synonym of 'honour')
'socialists suppressing conflict' is the wordplay.
'socialists' becomes 'reds' (red is a kind of socialist).
'suppressing' indicates putting letters inside.
'conflict' becomes 'war' (war is a kind of conflict).
'reds' enclosing 'war' is 'REWARDS'.
(Other definitions for rewards that I've seen before include "Gifts given in acknowledgement of behaviour or merits" , "Prizes or remunerations" , "Benefits" , "Payments made as marks of appreciation" , "Honours or shows of appreciation" .)