Territory English marks cross (7)
I believe the answer is:
emirate
'territory' is the definition.
(I have seen 'Islamic territory' mean 'emirate' so perhaps 'territory' could also mean 'emirate')
'english marks cross' is the wordplay.
'english' becomes 'E' (abbreviation).
'marks' becomes 'M' (former German currency).
'cross' becomes 'irate' (both can mean angry).
'e'+'m'+'irate'='EMIRATE'
(Other definitions for emirate that I've seen before include "Meatier (anag) -- Qatar, for example" , "Gulf state, perhaps" , "state forbidding alcohol?" , "Arab state" , "Abu Dhabi, perhaps" .)