Dak
mentat
And xenophobia need not only apply to the annihilation of particular ethnic groups. Xenophobia simply refers to a centralized, programmatic distrust toward and paranoia of certain groups based on race or ethnicity. In this sense, Italy was definitely xenophobic. Mussolini was terrified of the prospect of "white extinction," and promoted various ethnic cleansing operations, although nothing that matched the extent of the Holocaust.
If it's watered down that much, why not just say racist?