If I am not mistaken, Mr. McCain was born in a hospital on a United States Naval installation in Panama, which, I understand, would be considered the same as U.S. territory.
You are mistaking.
McCain was born in el Hospital Colón, Ciudad de Colón, República de Panamá.
Well, we can admit we are mistaken, ‘cause we’re not running for high office.
But the consequence is not really different. I believe that any federal court, if ever asked to rule in such a case (of course, there is no case at the moment re. Mr. McCain), would count the birth of a child to a U.S. military couple, holding a Consular Report of Birth properly issued, as having the same status as a child born in Arizona.