Clue: Dicky has new girl around — a perfect situation (7-2)
Answer: SHANGRI-LA
Explanation: Definition: perfect situation
A charade of SHA, an anagram ('dicky') of 'has' plus N ('new') plus GRIL, an anagram ('around') of 'girl' plus 'a'. Many years ago there was seen in the London Tube some graffiti which ran "I like grils'. Someone added "It's girls, stupid – G I R L S", and below that a third hand offered "And what about us grils?"