Some Scottish islands or isles around the north (7)

I believe the answer is:

orkneys

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'some scottish islands' is the definition.
(I've seen this before)

'or isles around the north' is the wordplay.
'isles' becomes 'keys' (I am not sure about this - if you are sure you should believe this answer much more).
'around' indicates putting letters inside.
'the north' becomes 'N' (abbreviation).
'keys' placed around 'n' is 'kneys'.
'or'+'kneys'='ORKNEYS'

Can you help me to learn more?

(Other definitions for orkneys that I've seen before include "Western Isles" , "Scottish isles" , "Northerly UK islands" , "Islands north of Britain" , "Islands off NE tip of Scottish mainland" .)

I've seen this clue in the Sydney Morning Herald.

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