PEKING, June 7, Reuter - Comments made by China's top leader Deng Xiaoping this week indicate his succession plan may succeed in spite of the dismissal in January of his one-time protege Hu Yaobang.

Deng's plan to force all the old men in the leadership to retire this year had appeared unworkable since the political upheavals early in the year.

But the toughest, most experienced politician in China and perhaps the world has not played his final card yet.

Speaking to a Japanese delegation last Thursday, Deng, 82, said he would give up all but one of his posts at the Communist Party's 13th Congress, scheduled for October.

Coy and cryptic in the manner of Chinese politicians, Deng did not spell out which of his three posts he would retain. But his comments indicated he planned to give up his seat on the politburo's standing committee, the country's ruling body.

"Old men like me should retire from the politburo, so now I am doing something to attain this purpose," he said. "But I will retain one of my posts, so I will be able to play my role as now, so do not be worried."

His other formal posts are chairman of the Central Military Commission, making him commander-in-chief of the armed forces, and chairman of the Advisory Commission, a body Deng set up in 1982 to encourage ageing officials to retire.

But his real position has no formal title. He is paramount leader, a post he will hold, like an emperor, until his death.

Since his return to power in 1978, he has been trying to do away with the system whereby leaders stay in power until removed by death or purges. He has tried to establish a tradition of retirement, in spite of his own position.

Diplomats and analysts say Hu's dismissal as Communist Party chief due to widespread disapproval of his performance had damaged Deng's prestige and thrown his original succession strategy into confusion.

But the old man remains the dominant political figure in China, with no one either among the reformists or the conservatives coming even close.

"The fall of Hu must have undercut his power to some extent, but his position has not been substantially weakened," a diplomat said.

"A large part of the reason for that is that there is no replacement for him. If Deng was to go, there is no one else who would be acceptable to everyone as the overall leader."

Diplomats and analysts said they thought that of the three posts Deng now holds, it was most likely he would retain that of Advisory Commission chairman.

And if Deng does give up his seat on the five-man politburo standing committee, the other ageing members of that body would probably have to follow suit.

"The crux has always been in the past that the old conservatives will not retire unless Deng retires," a Western diplomat said.

"If Deng did retire, it would force the others to retire. The difference is that if Deng retires, he still retains all his influence, while the others lose much of their power," he added.

Hu is still on the politburo, but he is expected to be dropped at the party meetings in October. He was forced to resign after widespread criticism that he had not been tough enough in cracking down on "bourgeois liberalism", China's jargon for Western political influences.

President Li Xiannian, 78, and veteran Chen Yun, 82, are both on the conservative wing of the party, and they are believed to have long resisted retirement unless Deng accompanies them.

"If he can arrange things so that he and the other old men are removed from the politburo without himself losing any power, he will have scored another recovery," said one diplomat.

Only one member of the outgoing politburo standing committee will retain his seat if the old men do all retire in October -- Premier Zhao Ziyang, who is also acting party chief.

The question then would be who would fill the four vacant politburo seats.

Top general Yang Shangkun, an old and trusted ally of Deng's, has been high profile in recent weeks, visiting the United States and meeting President Reagan and other officials.

One diplomat suggested Yang could become head of the Military Commission if Deng vacated the post. As Military Commission chairman, Yang would almost certainly be eligible for a seat on the politburo's standing committee.

The only snag would be his age. At 80, Yang is already older than President Li.

"Yang is no youngster, and putting him on the politburo standing committee would go against much of what they have said about rejuvenating the leadership," said a Western diplomat.

"But they could balance him by bringing in a number of younger people, on the basis of which they could argue that rejuvenation was moving ahead smoothly and that the events of January were just a blip," he added.

Other more youthful possibilities include Hu Qili, 58, named as acting party chief when Zhao left on a three-week foreign tour last week, and Vice-Premier Li Peng, 59, who is the front runner to replace Zhao as premier.

Another crucial question is whether the most visible of the conservative leaders who have returned to prominence this year, Peng Zhen, will gain a place on the standing committee.

Many of these decisions may not have been made yet. The tradition is that the entire leadership adjourns in August to the seaside resort of Beidaihe east of Peking.