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Ummmmm, actually, no. He was born in a civilian hospital off the base.

Ummmmm, actually, yes. He was born in a hospital on the base:

Some bloggers are questioning John McCain's right to run for the presidency on the basis of his birth in the Panama Canal Zone. They have produced "evidence" showing that that the hospital where the Arizona senator says he was born was not built until 1941--five years after McCain's birth. A review of the archival record shows that there was a small hospital at the Coco Solo submarine base in 1936 and also reveals the name of the U.S. Navy physician who signed McCain's birth certificate.

(Just closing the loop here)

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Gatún ~ [Some say that McCain] was born at Coco Solo Naval Base, Canal Zone, located on the Atlantic side of the isthmus.

If he was born on the Atlantic side, he could not have been born at Coco Solo because Coco Solo Hospital wasn’t built until ‘41-‘42. He was born in ‘36.

This would mean that he was born in Colón Hospital, Republic of Panama, and not the Canal Zone. Colón Hospital is a short distance from Coco Solo.

But a couple of years ago or less, I read here on FR his father was stationed at Quarry Heights, Canal Zone, located on the Pacific side (not Coco Solo). A couple of hundred yards past the front gate was Gorgas Hospital, our civilian hospital located in the Canal Zone. This means he would have been born at Gorgas Hospital, which was the nearest hospital.

Now this brings up another point:

If he was born at Colón Hospital, Panamanian territory,

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aruanan ~ "...They have produced "evidence" showing that that the hospital where the Arizona senator says he was born was not built until 1941--five years after McCain's birth. A review of the archival record shows that there was a small hospital at the Coco Solo submarine base in 1936 and also reveals the name of the U.S. Navy physician who signed McCain's birth certificate."

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Thanks, aruanan, for the puzzle piece...

Ummmmm, actually, yes. He was born in a hospital on the base:

"Some bloggers are questioning John McCain's right to run for the presidency on the basis of his birth in the Panama Canal Zone. They have produced "evidence" showing that that the hospital where the Arizona senator says he was born was not built until 1941--five years after McCain's birth. A review of the archival record shows that there was a small hospital at the Coco Solo submarine base in 1936 and also reveals the name of the U.S. Navy physician who signed McCain's birth certificate."

Well text of the quote is correct. Unfortunately he wasn't born at Coco, according to his birth documents posted here yesterday evening, he was born in the French hospital in Colon, well outside the zone. Maybe you want to make the argument that being delivered by a US Navy physician is close enough?