Crossword Genius

Lad carrying American tool unknown in German state (6)

Ross

I believe the answer is:

saxony

I'm a little stuck... Click here to teach me more about this clue!

'german state' is the definition.
(I've seen this before)

'lad carrying american tool unknown' is the wordplay.
'lad' becomes 'son' (lad can informally mean a young boy).
'carrying' means one lot of letters goes inside another.
'american tool' becomes 'ax' (ax is a kind of tool. I am not sure about the 'american' bit.).
'unknown' becomes 'y' (algebra).
'son' going around 'ax' is 'saxon'.
'saxon'+'y'='SAXONY'

'in' is the link.

Can you help me to learn more?

(Other definitions for saxony that I've seen before include "Fine woollen cloth" , "somewhere in Germany" , "German state with Dresden as capital" , "(Historic) state of eastern Germany" , "Old German kingdom" .)

I've seen this clue in The Times.
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