Retired Navy Vice Adm. Rufus L. Taylor, 68, who was deputy director of the Central Intelligence Agency from 1967 to 1969, died Sept. 14 at his home in Whispering Pines, N.C. He had suffered from cancer.

He was named to the agency's No. 2 post when Richard M. Helms became CIA director. It is a tradition that one of the agency's top two posts be filled by a civilian, the other by a military officer.

Adm. Taylor spent the last 10 years of his Navy career in intelligence before retiring in February 1969.

In 1959, he was named assistant director for foreign intelligence and later deputy director of naval intelligence.

He was named assistant chief of naval operations and director of naval intelligence in 1963, then served as deputy director of the Defense Intelligence Agency from 1966 until he joined the CIA.

Adm. Taylor was a native of ST. Louis and a 1933 graduate of the Naval Academy at Annapolis.

After duty aboard the battleship Arizona, he was assigned from 1938 to 1941 as a Japanese language student at the American Embassy in Tokyo.

He served as a communications officer in the Pacific during World War II, with the U.S occupation forces in Japan after the war, and as assistant chief of staff for intelligence with the Pacific Fleet before coming to Washington in 1959.

Survivors include his wife, Karin G., of the home; a son, Navy Lt. Cmdr. Rufus L. III, of Newport, R.I., and two daughters, Mrs. Kenneth Klyce, and Lisa Noel Taylor.