. . . We now maintain full and friendly diplomatic relations with China. This relationship began only three years ago, and it is one we should develop and strengthen in the years ahead . . .

China and the United States have a common interest in maintaining peace so that our nations can grow and prosper. Our two-way trade has now reached approximately $3 1/2 billion annually, and China's program of modernization depends in a major way on Western and United States Technology . . .

We and China share a deep concern about the pace and scale of the Soviet military buildup. Chinese leaders . . . favor us bolstering our defense and our alliances.

It is quite clear that we do not, however, see eye-to-eye on Taiwan, and, thus, this is an appropriate time for me to state our position on this subject . . . Proposed Policy

Based on my longstanding conviction that America can provide leadership and command respect only if it keeps commitments to its friends, large and small, a Reagan-Bush administration would observe these five principles in dealing with the China situation:

First, U.S.-Chinese relations are important to America as well as to Chinese interests. Our partnership should be globally strategic In seeking improved relationships with the People's Republic of China, I would extend the hand of friendship to all Chinese. In continuing our relations, which date with the historic opening created by President [Richard] Nixon, I would continue the process of expanding trade, scientific and cultural ties.

Second, I pledge to work for peace, stability and economic growth of the western Pacific area in cooperation with Japan, the People's Republic of China, the Republic of Korea and Taiwan.

Third, I will cooperate and consult with all countries of the area in a mutual effort to stand firm against aggression or a search for hegemony which threatens the peace or stability of the area.

Fourth, I intend that U.S. relations with Taiwan will develop in accordance with . . . the Taiwan Relations Act. This legislation is . . . designed to remedy the defects of the totally inadequate legislation proposed by Jimmy Carter. By accepting China's three conditions for normalization, Jimmy Carter made concessions that Presidents Nixon and [Gerald] Ford steadfastly refused to make.

I was, and am, critical of his decision, because I believe he made concessions that were not necessary and not in our national interest. I felt that a condition of normalization, by itself a sound policy choice, should have been the retention of a liaison office on Taiwan of equivalent status to the one which we had earlier established in Peking.

With a persistent and principled negotiating position, I believe that normalization could ultimately have been achieved on that basis. But that is behind us now. My present concern is to safeguard the interests of the United States and to enforce the law of the land . . . The Taiwan Relations Act

[The Taiwan Relations Act], designed by Congress to provide adequate safeguards for Taiwan's security and well-being, also provides the official basis for our relations with our long-time friend and ally. It declares our official policy to be one of maintaining peace and promoting extensive close and friendly relations between the United States and the 17 million people on Taiwan, as well as the 1 billion people of the China mainland. Defense of Taiwan

It specifies that our official policy considers any effort to determine the future of Taiwan by other than peaceful means a threat to peace and a of grave concern to the United States. And most important, it spells out our policy of providing defensive weapons to Taiwan and mandates of the United States to maintain the means to resist any resort to force or other forms of coercion which threaten the security of the social or economic system of Taiwan.

This act further spells out in great detail how the president . . . shall conduct relations with Taiwan, leaving to his discretion the U.S. relations with Taiwan through the American Institute in Taiwan. It specifies that for that purpose, they are to resign for the term of their duty in Taiwan and then be reinstated to their former agencies of the U.S. government with no loss of seniority, status or pension rights.

The intent of the Congress is crystal clear. Our official relations with Taiwan will be funded by Congress with public monies, the expenditure of which will be audited by the Comptroller General of the United States and specific methods of achieving policy objectives.

The act further details how our official personnel, including diplomats, are to administer congressional oversight will be performed by two standing committees of the Congress.

Now you might ask what I would do differently.

I would not pretend, as Carter does, that the relationship we now have with Taiwan, enacted by our Congress, is not official. I am satisfied that this act provides an official and adequate basis for safeguarding our relationship with Taiwan. And I pledge to enforce it. Carter's Practices

But I will eliminate petty practices of the Carter administration which are inappropriate and demeaning to our Chinese friends on Taiwan.

For example, it is aburd and not required by the act that our representatives are not permitted to meet with Taiwanese officials in their offices and ours.

I will treat all Chinese officials with fairness and dignity. I would not impose restrictions which are not required by the Taiwan Relations Act and which contravene its spirit and purpose.

Here are other examples of how Carter has gone out of his way to humiliate our friends on Taiwan:

Taiwanese officials are ignored at senior levels of the U.S. government. The Taiwan Relations Act specifically requires that Taiwanese be permitted to keep the same number of offices in this country as they had before. Previously, Taiwan had 14 such offices. Today there are but nine. Taiwanese military officers are no longer permitted to train in the United States or to attend [U.S.] service academies.

Recently, the Carter administration attempted to ban all imports from Taiwan labeled "Made in the Republic of China," but was forced to rescind the order after opposition began to mount in the Congress.

The Carter administration unilaterally imposed a one-year moratorium on arms supplies, even though the act specifies that Taiwan shall be provided with arms of a defensive character.

The Carter administration abrogated the civil aviation agreement with Taiwan which had been in effect since 1947. In response to demands from the People's Republic of China, he did this . . . No Interference

Fifth, as president I will not accept the interference of any foreign power in the process of protecting American interests and carrying out the laws of our land. To do otherwise would be a dereliction of my duty as president.

It is my conclusion that the strict observance of these five principles will be in the best interests of the United States, the People's Republic of China and the people on Taiwan.

The specific implementation of these duties will have to await the results of the election in November. But in deciding what to do, I will take into account the views of the People's Republic of China as well as Taiwan.

It will be my firm intention to preserve the interests of the United States and, as president, I will choose the methods by which this shall best be accomplished. . . .