South-western European found when Stalin’s secret police chief hid in Indiana (7)

I believe the answer is:

iberian

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(Other definitions for iberian that I've seen before include "from a part of Europe" , "Native of a European peninsula" , "Peninsula of Spain and Portugal" , "south of the Pyrenees" , "Relating to the Spanish peninsula" .)

I've seen this clue in The Hindu.

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