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That year, over strenuous objections on national-security grounds from the State Department's Office of American Republics Affairs (and the government of Panama), the U.S. government reported to the [[United Nations]] on the Panama Canal Zone as "occupied territory," a [[propaganda]] coup for the [[Soviet]]s. According to Assistant Secretary of State for American Republic Affairs Spruille Braden:

That year, over strenuous objections on national-security grounds from the State Department's Office of American Republics Affairs (and the government of Panama), the U.S. government reported to the [[United Nations]] on the Panama Canal Zone as "occupied territory," a [[propaganda]] coup for the [[Soviet]]s. According to Assistant Secretary of State for American Republic Affairs Spruille Braden:

{{cquote|We then tried to run it down, and we found that this report had been submitted and the employment of the words "occupied territory" by the Office of Special Political Alfairs, that is to say, Mr. Alger Hiss.<ref>Subcommittee to Investigate the Administration of the Internal Security Act and Other Internal Security Laws, Committee on the Judiciary, U.S. Senate, [http://www.archive.org/download/interlockingsubv1920unit/interlockingsubv1920unit_bw.pdf Interlocking subversion in Government Departments] (Washington: Government Printing Office, 1953), Part 19-20, 1365 (PDF p. 25)</ref>}}

{{cquote|We then tried to run it down, and we found that this report had been submitted and the employment of the words "occupied territory" by the Office of Special Political Affairs, that is to say, Mr. Alger Hiss.<ref>Subcommittee to Investigate the Administration of the Internal Security Act and Other Internal Security Laws, Committee on the Judiciary, U.S. Senate, [http://www.archive.org/download/interlockingsubv1920unit/interlockingsubv1920unit_bw.pdf Interlocking subversion in Government Departments] (Washington: Government Printing Office, 1953), Part 19-20, 1365 (PDF p. 25)</ref>}}

Secretary of State James Byrnes told the FBI he would have fired Hiss, but for the mandatory Civil Service Commission hearing, which would have revealed confidential sources on the case.<ref>Allen Weinstein, ''Perjury: The Hiss-Chambers Case'' (New York: Alfred A. Knopf, 1978), ISBN 0394495462, p. 43</ref>

Secretary of State James Byrnes told the FBI he would have fired Hiss, but for the mandatory Civil Service Commission hearing, which would have revealed confidential sources on the case.<ref>Allen Weinstein, ''Perjury: The Hiss-Chambers Case'' (New York: Alfred A. Knopf, 1978), ISBN 0394495462, p. 43</ref>