PATRIARCH Mr Deng Xiaoping has laid down new edicts for consolidating the Communist Party leadership, most of which have been endorsed by the National People's Congress. Chinese sources said that Mr Deng had given instructions on the ''fusion of party and government'' or senior party leaders playing significant roles in the Government and in the legislature. Moreover, the patriarch had again warned that if corruption could not be stemmed, the Communist Party might be ''adulterated''. The sources said that while up to the party congress in 1987 Mr Deng had agreed to the principle of ''the separation of party and government'', the patriarch now thought it advisable for top party leaders to concurrently hold government and legislative positions. ''Deng thinks that one reason for the atrophy of the Communist Party of the former Soviet Union was that Soviet apparatchiks were cut off from day-to-day administration and economic policy-making,'' a source said. ''The patriarch thinks that for the party to thrive, it must take an active part in government and in the market economy.'' For example, it was Mr Deng who decided late last year to confer upon party chief Mr Jiang Zemin the position of state president as well as head of the military commission. Upon Mr Jiang's election as head of state last weekend, the Chinese media pointed out that it would now be more convenient for the party chief to take part in government decision-making and to represent China on overseas visits. In the middle of last year, the patriarch also decided that party units and senior cadres could run businesses on the side. According to the China-watching journal The Mirror, Mr Deng has asked the new congress and judicial organs to pay special attention to fighting corruption. ''If the working style [of the party] continues to deteriorate, what good will it do even if economic construction is successful?'' he asked. Mr Deng added that if corruption among cadres persisted, ''the nature of the entire economy would be adulterated, and a world marked by corruption, theft and influence peddling would come into being''. Interviews given by congress deputies to the official media, however, show not all legislators share Mr Deng's conservative political ideas. The semi-official Hongkong China News Agency has reported that many deputies are worried about the prospects of reform. ''If China's political reform fails to catch up [with economic reform], the development of the entire economy will be adversely affected,'' the agency quoted deputies as saying. Congress members have also expressed frustration about the lack of progress in reforms in allied areas including culture and the media.