Nationalist China Rejects U.S. Plan

TAIPEI, Formosa, Oct. 1--President Chiang Kai-shek balked at the U.S. formula for peace in Formosa Strait and his Nationalist government then flatly rejected it today.

Chiang made clear in an interview that he is opposed to reducing the garrisons of the offshore islands as the price of a cease-fire. He implied he would be free to ignore any cease-fire negotiated by the United States and Red China.

"Clears Way for Invasion"

An official statement from the Foreign Ministry said troop cuts would clear the way for a Red invasion of Formosa and therefore "we cannot countenance the reduction of this defensive strength."

Chiang and his Foreign Office aimed their shafts at a statement by Secretary of State Dulles in a Washington news conference Tuesday. Dulles proposed a cut in the Nationalist offshore garrisons in exchange for a cease-fire. He was backed up Wednesday by President Eisenhower.