ABSTRACT
Deputy Prime Minister Teng Hsiao-p'ing said today that efforts to establish normal diplomatic relations between the United States and China had suffered a setback during the visit last month of Secretary of State Cyrus R. Vance. Mr. Teng said that the United States had promised to take the three actions China has demanded for bringing about normal relations: breaking diplomatic relations with Taiwan, abrogating the United States-Chinese Nationalist defense treaty and withdrawing the 1,200 American troops on the island. The reverse liaison proposal was unacceptable, the deputy prime minister said, because it would mean continued diplomatic links between the United States and Taiwan. Mr. Teng stressed that the meeting with Mr. Vance had been cordial and useful for the exchange of views but that reports of progress were wrong.
