CRUZ DUMPS DAVIS; UEBERROTH QUITS.

Byline: Rick Orlov and Harrison Sheppard Staff Writers

Hours after Republican Peter Ueberroth pulled out of the governor's race, Lt. Gov. Cruz Bustamante abandoned his ``no on recall'' strategy Tuesday in favor of an all-out campaign for his own victory.

The stunning developments provided the latest twists in the unpredictable and unprecedented Oct. 7 recall election.

Bustamante's dramatic move to distance himself from Gov. Gray Davis' campaign against recall comes after the release of a poll showing he's running slightly ahead of Republican Arnold Schwarzenegger but has rising negative ratings over taking $4 million in contributions from Indian casinos.

``We made a decision late last week in response to this negativity that what we have to do is make a more conscious, aggressive case for why Cruz Bustamante will be a great governor,'' Bustamante's political consultant Richie Ross said.

Bustamante remains opposed to the recall, he said, but all of the campaign's resources and efforts will be focused on promoting his candidacy rather than fighting the recall.

The strategy shift, he said, was in response to what he characterized as increasingly aggressive efforts by Republicans against Bustamante.

Bustamante and Davis have a chilly relationship and rarely speak. The lieutenant governor was the first to defy Davis' effort to keep any prominent Democrat from running and has been barely mentioning the ``no on recall'' slogan or Davis in recent days.

Earlier in the day, Ueberroth held a news conference in Costa Mesa to announce he was quitting the race, unable to build on his popularity as former head of Major League Baseball and head of the 1984 Olympics.

``We were starting to move up, but I can't see how the numbers work to get across the goal line,'' Ueberroth said. ``I'm a businessman. I've taken a look at what we're doing and I've said if we can't win, I'm going to step out.''

Ueberroth, 66, a Republican running as an independent, focused on reviving the state's economy, was mired in fourth place with about 5 percent support in most polls behind Bustamante, Arnold Schwarzenegger and Sen. Tom McClintock, R-Thousand Oaks, in the field of 135 candidates.

Some analysts said his withdrawal was likely to most benefit Schwarzenegger, who also is a fiscal conservative and social moderate. It also was likely to increase pressure on McClintock, a conservative who has been gaining ground in polls, to withdraw for the sake of party unity.

Ueberroth said he would not endorse any candidate until he has a chance to talk to them about their plans to create jobs.

Analysts said Schwarzenegger would have the best chance to pick up Ueberroth supporters.

``At the least, it's a psychological boost,'' said GOP consultant Allan Hoffenblum. ``It shows Republicans are coalescing behind Schwarzenegger.''

McClintock has faced continual questions about whether he intends to stay in the race, possibly forcing a split Republican vote which could cede the race to front-running Bustamante. He again insisted Tuesday he is in it to stay. McClintock, who appeals to the Republican Party's conservative base, has repeatedly said he would not leave the race, asking reporters, ``What is it about the word 'no' you guys don't understand?''

``His withdrawal intensifies my resolve to stay the course,'' McClintock said in a written statement.

``Those who supported Peter Ueberroth are serious voters who supported a serious candidate - and I would welcome their support in the days ahead.''

Another major Republican, businessman Bill Simon, dropped out three weeks ago, but both his name and Ueberroth's will appear on the ballot. Earlier, Rep. Darrell Issa, R-Vista, who financed the recall petition drive, decided against running before his name was placed on the ballot.

The latest Field Poll showed Schwarzenegger and McClintock gained equally from Simon's withdrawal, while Ueberroth remained around 5 percent. That recent poll had McClintock at 13 percent and Schwarzenegger at 25 percent.

Officials at the Field Poll said they would be releasing a new survey today on where they expect the Ueberroth vote to go.

Like Ueberroth, neither Simon nor Issa have endorsed in the election yet.

Davis spokesman Peter Ragone said the governor believed Ueberroth's decision showed it ``was clear that Arnold is trying to strong-arm the Republican field.''

``We believe as Republicans coalesce behind Schwarzenegger and McClintock, Democrats and independents will coalesce against the recall.''

Ueberroth, who said he wanted to run a bipartisan, independent campaign even though he is a registered Republican, said he had received no pressure from the state GOP to pull out.

Republican Party spokesman Mike Wintemute said the party was remaining neutral - although it would prefer to see one GOP candidate in the field.

The state party will hold its annual convention this weekend in Los Angeles, but at this point is not planning to endorse any candidate. Both McClintock and Schwarzenegger are scheduled to address the convention.

However, former state GOP chairman Shawn Steel, who is backing Schwarzenegger, said he hopes to see unified support.

``It's important for Schwarzenegger to make the approach to McClintock and lay out a case for why he should withdraw. Arnold needs to make the connections that he is committed to consolidate the right-of-center members of the party.''

Rick Orlov, [phone]

rick.orlov(at)dailynews.com