By R.H. Melton
Washington Post Staff Writer
Tuesday, April 7, 1998; Page B01

RICHMOND, April 6—George Allen's face lights up when he talks about running for governor again. Sure, a lot of fellow Republicans want him to run for U.S. Senate in two years, but here's how the former governor handicaps those jobs:

"Obviously the difference is, as governor you're a CEO, and in the U.S. Senate you are a board of directors," said Allen, with a trademark wad of chewing tobacco tucked firmly in his cheek. "It's the best board of directors in the world, but it is different."

These are bright spring days for Allen. He landed a blue-chip law partnership (and corner office with a killer view of the James River) upon leaving government three months ago and is a new (sleep-starved) father. Most tantalizing of all, he has the hierarchy of the state GOP, from party elders on down to Republican foot soldiers, holding its breath to see what he does next.

And Allen, a youthful 46, is loving it. "I have honestly not made the decision," he said today in an interview about his plans. Then, smiling, he added, "It's nice that they tell you to run for something instead of get the heck out of town!"

Does he gear up now to challenge two-term Sen. Charles S. Robb (D-Va.) in 2000, a task that would force him into the unhappy chore of raising about $70,000 a week for the next two years? Or, as many expect, will he try again in 2001 for the job of governor, once held by the likes of Patrick Henry, Thomas Jefferson and James Monroe?

Few Allen intimates or Republican activists would be quoted by name for fear of alienating the former governor or the two camps struggling over his future. But most agreed that whatever national ambitions Allen has -- such as a talked-about run for a vice presidential nomination -- rest on what he decides to do in coming weeks.

For Republicans, what the popular Allen decides will be significant because of its inevitable ripple effect, as several statewide officeholders and members of Congress jockey for a shot at governor or the Senate.

Waiting in the wings are Mark L. Earley, the state attorney general, and Lt. Gov. John H. Hager, who swept into office last fall with a fellow Republican, Gov. James S. Gilmore III. Also standing by are Rep. Thomas M. Davis III (R), of Northern Virginia, whose closest friends say he yearns to serve in the Senate, and Rep. Robert W. Goodlatte (R), of Roanoke, who is popular with party regulars though little known outside the Shenandoah Valley.

State Sen. J. Randy Forbes (Chesapeake), the state Republican chairman and a friend of Allen's, said the former governor is still weighing his options and can't control how other GOP leaders react.

"All the players on the bench want to be the sixth man, and with that will come the down side," Forbes said. "We'll have to manage the internal squabbles that could defeat us. With a strong bench, I'll take that problem any day."

Some observers believe that in the end, Allen may decide against running for governor to make way for the new generation of Republican leaders in Virginia.

"There is a kind of tradition where once you've been governor, it's time to move on to the next step," said Mike Salster, a Southside newspaper publisher and former Republican Party operative.

At the same time, Salster noted Allen's convincing 1993 win over then-state Attorney General Mary Sue Terry (D) and his strong record as governor on parole and welfare.

"Some see George as the dragon slayer: He took on Mary Sue, and now it's time to take on Chuck," Salster said.

Although a six-year stint in the Senate could elevate his profile nationally, it might come at a cost, Allen aides say. For starters, his wife, Susan, did not particularly care for Washington during Allen's one term in Congress. But she did love being first lady of Virginia.

Then there are the strict limits on individual campaign contributions and corporate gifts in a Senate race, which don't exist in Virginia state elections.

"It's more difficult to raise money at federal elections," Allen said.

On the other hand, Allen said, he could bring to the Senate a specialty in economic development that he contends is largely lacking there, becoming in Washington a new engine that would help state government back home grow businesses and create jobs.

Many GOP strategists want Allen prepped for 2001. On the horizon they see Mark R. Warner, the millionaire Democrat who ran a strong campaign against Sen. John W. Warner (R-Va.) and who would not be shy about dipping into his own pockets if he runs for governor. Mark Warner declined to comment today.

Allen loved his four years at the helm of state government, pushing through a conservative agenda while riding a surging tide of economic prosperity. His "aw-shucks" style seems well-suited to the state.

A booming state economy also may be a powerful lure to Allen, who spends one or two days a week working with corporate clients in Northern Virginia. This summer, he will help host the 11th World Congress on Information Technology at George Mason University in Fairfax County.

Allen is constantly on the road talking to chambers of commerce and will keep his statewide profile high while working for one of Richmond's silk-stocking firms. And if he decides to run?

"If I ever run again -- for whatever I run for -- I'll always feel like an underdog," Allen said. "It makes you try harder."