Problem remains with unfinished canal (5)

I believe the answer is:

issue

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'problem' is the definition.
(issue can mean a problem or difficulty)

'remains with unfinished canal' is the wordplay.
'remains with' becomes 'is' (I am not sure about this - if you are sure you should believe this answer much more).
'unfinished' means to remove the last letter.
'canal' becomes 'Suez' (Suez Canal).
'suez' with its last letter removed is 'sue'.
'is'+'sue'='ISSUE'

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(Other definitions for issue that I've seen before include "Bring out - children" , "Offspring; problem" , "Hot topic; outcome" , "Publish - put into circulation" , "Put out; result" .)

I've seen this clue in The Independent.

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