Crossword Genius

State that surrounds a country (5)

Ross

I believe the answer is:

yukon

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

'state' is the definition.
The answer and definition can be both locations as well as being singular nouns.
Perhaps they are linked in a way I don't understand?

'that surrounds a country' is the wordplay.
'that' becomes 'yon' (archaic term meaning 'that').
'surrounds' indicates putting letters inside.
'a country' becomes 'UK' (United Kingdom).
'yon' placed around 'uk' is 'YUKON'.

Can you help me to learn more?

(Other definitions for yukon that I've seen before include "Klondike area" , "Canadian territory containing Klondike" , "North American banker" , "Canadian region" , "NW Canadian territory" .)

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