Give out to fool upsetting soldier in the middle of panic (6)
I believe the answer is:
assign
'give out' is the definition.
(thesaurus)
'fool upsetting soldier in the middle of panic' is the wordplay.
'fool' becomes 'ass' (ass is a kind of fool**).
'upsetting' shows that the letters should be reversed in order.
'soldier' becomes 'gi' (government issue or general issue).
'in the middle of' says to take the centre (I've seen 'in the middle' mean this).
The middle of 'panic' is 'n'.
'gi' backwards is 'ig'.
'ass'+'ig'+'n'='ASSIGN'
'to' is the link.
(Other definitions for assign that I've seen before include "Determine" , "Set aside for a specific purpose" , "Give responsibility to" , "Appoint to a duty" , "share out" .)