Inside Report (3)

Democratic Party election hopes in the Western states next year may come down to just one man. That man: controversial Secretary of the Interior, James Watt. The Democrats see him as a major political liability for the Reagan administration.

The Democratic National Committee has called for Watt's resignation, has paid exploratory visits to Western governors, most of whom are Democrats, and is planning strategy sessions with the Democratic- (and Western-) controlled House Interior Committee.

DNC chairman Charles Manatt thinks even moderate and progressive Republicans in the West may f all into step behind the anti-Watt banner.m