What does the cryptic crossword clue "Nice and within the rules to show small busts? (10)" mean?

The wordplay uses a container (one word inside another). ET (synonym="“and” in the French city of Nice") in STATUTES (synonym="STATUTES") = STATUETTES The answer is STATUETTES.

Nice and within the rules to show small busts? (10)

Guardian Cryptic #29233 | 13 Down | 2023-11-21 flower

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