Crossword Genius

Territory, such as San Marino or Lesotho, that is surrounded by another country (7)

Ross

I believe the answer is:

enclave

(Other definitions for enclave that I've seen before include "Part of country surrounded by another" , "Surrounded area of a different ethnicity" , "Isolated cultural group" , "Area ethnically different from its surroundings" , "Land wholly within foreign territory" .)

I've seen this clue in The Times.
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