The most common and most likely answer to this crossword clue is the 10 letter word SEYCHELLES
I've seen this crossword clue in Financial Times
S
E
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C
H
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S
More clues leading to the result SEYCHELLES
- Report to tell of missiles found on island group
- For example bombs audible in island group
- Told state’s bombarding archipelago
- Island group heard to mention cases
- Deliver bombs, as reported, for island group
- Spots cover chief in mostly golden islands
- Island country cheerlessly reorganised with king deposed
- On the radio: state bombs archipelago
- Group of 5-Downs say “shells” aloud
- Islands involving revolutionary in trade agreement reflecting
Buddy explains!

The straight part
We know that "Island group" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case island group = seychelles.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.