ARNOLD FRETS OVER DEBATE FRENZY.

Byline: Harrison Sheppard Staff Writer

DANA POINT - Arnold Schwarzenegger said Thursday that he is concerned about attention over the candidates in the recall race overshadowing the recall effort itself, allowing Gov. Gray Davis to gain ground in his effort to keep his job.

Schwarzenegger said he was reluctant to debate because of the risk that the candidates would take the spotlight away from Davis himself. He gave in, he said, because of he didn't want to look like he was afraid or unable to debate.

``To be honest with you, it was because of the pressure,'' Schwarzenegger said in an interview with the Daily News. ``I just didn't want for people to say, 'Oh, he didn't want to debate.' Because it has nothing to do with that. I'm more than happy to sit down and debate.''

Schwarzenegger participated in only one campaign debate, held Wednesday in Sacramento.

Davis, who did not participate in it and has been gaining ground in recent polls, on Thursday characterized the debate as ``a food fight.''

Schwarzenegger said that was one of his concerns.

``That's why I said to my guys - they said we should have debates. I said no, I think it's the wrong way to go, because the more we debate, the more it puts the spotlight on that, rather than the spotlight on the big picture, which is that we want to recall Gray Davis. That's what this is all about.''

Schwarzenegger sat down to an interview with the Daily News and the Contra Costa Times for about 20 minutes Thursday evening, prior to attending a $1,000-a-plate fund-raiser in Dana Point with Orange County Republicans, an event expected to raise $500,000 for his campaign.

This week, Schwarzenegger launched a series of television ads criticizing his opponents for taking large contributions from Indian gaming interests and criticizing the tribes for not contributing more to the state.

But he said he would still be open to allowing the tribes to expand gaming on their reservations - even doubling the size of the industry - as long as they contribute more to the state.

In Connecticut, he said, casinos contribute 25 percent of their revenue and that seems like a possible model for California.

``We have here a situation, a financial crisis, an economic crisis. Especially at a time like that, I think everyone has to chip in and work together. I know we can come to an agreement of working out compacts, where they participate much more. I want to help them build it from a $5 billion industry to a $10 billion industry,'' he said.

He insisted his ads were not attacking the tribes themselves but only asking them to participate. He expressed confidence that he could negotiate with them if he becomes governor, despite the heated rhetoric coming from both sides recently.

The tribes have spent several million dollars supporting Democratic Lt. Gov. Cruz Bustamante and a lesser amount helping Republican state Sen. Tom McClintock - a move that is seen as taking support away from Schwarzenegger.

On Thursday, the Morongo tribe reported spending an additional $850,000 for McClintock.

Richie Ross, the chief political consultant for Bustamante, said Schwarzenegger's comments on both the debates and Indian gaming issues were ``insincere and self-serving.''

``The fact of the matter is he only put himself in the debate where he knew what the questions were going to be,'' Ross said. Otherwise, he said, Schwarzenegger would have had a much harder time answering questions.

Ross said Schwarzenegger was inconsistent on Indian gaming influence on state elections because he accepted money from them for his after-school initiative last year.

``He had the fund-raising brunch for them a year ago, he takes their money and he then turns around and says their money is ruining the political process,'' Ross said. ``And he lies and says they don't pay any taxes. Which is feeding into the worst of all stereotypes.''

Ross said the tribes pay taxes in the sense that the individual casino employees pay personal income taxes, gamblers pay taxes on their winnings and the casinos pay sales tax on purchases.

Harrison Sheppard, [phone]

harrison.sheppard(at)dailynews.com

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Arnold Schwarzenegger says his reluctance to debate was because he worried the focus would be taken off Gray Davis.

John McCoy/Staff Photographer