While the record remains muddy, based on searching a number of Internet sites, it would seem that the Congressional law passed in 1937 would trump the citizenship issue but, as the citation notes, does leave the "natural born citizen" issue unclear.
8 USC Section 1403 states - " TITLE 8 > CHAPTER 12 > SUBCHAPTER III > Part I > § 1403 § 1403. Persons born in the Canal Zone or Republic of Panama on or after February 26, 1904:
(a) Any person born in the Canal Zone on or after February 26, 1904, and whether before or after the effective date of this chapter, whose father or mother or both at the time of the birth of such person was or is a citizen of the United States, is declared to be a citizen of the United States.
(b) Any person born in the Republic of Panama on or after February 26, 1904, and whether before or after the effective date of this chapter, whose father or mother or both at the time of the birth of such person was or is a citizen of the United States employed by the Government of the United States or by the Panama Railroad Company, or its successor in title, is declared to be a citizen of the United States."