ABSTRACT
Deputy Prime Minister Teng Hsiao-p'ing said 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. In ail interview with executives and directors of the Associated Press, who are on a sixteen-day visit to China, Mr. Teng said that the discussions with Mr. Vance represented a retreat from proposals advanced by former President Gerald R. Ford and former Secretary of State Henry A. Kissinger. 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. Mr. Teng said that Mr. Vance had come to Peking with a proposal that was a retrogression from that position.
