Italian city and French port contracted spies (7)
I believe the answer is:
brescia
'italian city' is the definition.
(I've seen this before)
'french port contracted spies' is the wordplay.
'french port' becomes 'brest' (port city in Brittany).
'contracted' means to remove the last letter (to contract is to shorten).
'spies' becomes 'CIA' (Central Intelligence Agency).
'brest' with its final letter taken away is 'bres'.
'bres'+'cia'='BRESCIA'
'and' is the link.
(Other definitions for brescia that I've seen before include "Lombardy city; ascribe (anag.)" , "somewhere in Italy" , "Ascribe (anag) - Italian city" , "somewhere in Lombardy" .)