Subject: A Special Weekly Report From Capital Bureau 
Date: Published: 9/2/88 37 lines
Source:  Wall Street Journal.  Copyright Dow Jones & Co. Inc. 

    Washington Wire:  
    A Special Weekly Report From
    The Wall Street Journal's
    Capital Bureau
    ----  
    Compiled by Ronald G. Shafer

    OPTIMISM SOARS in the Bush camp as Dukakis struggles to
 regain momentum.
    Bush's attacks set the agenda, putting his opponent on the
 defensive.  In speeches, he will next hit Dukakis as a big
 spender and taxer.  Even Bush aides wonder why Dukakis hasn't
 fought back harder.  "As long as we keep him on the run," says
 one top adviser, "we'll keep banging away."  The next
 priority:  California, where efforts will focus on winning
 over baby boomers.
 
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    The FCC, fearing a less sympathetic view by the next
 administration, hurries to make final a rule that would
 sharply ease regulation of telephone profits.  The GSA moves
 to award its long-delayed $25 billion contract for a new
 government phone system by year's end.  As urged by Bush's
 regulatory task force, the FDA may speed up approval of new
 drugs for treating AIDS. 

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