Aide Who Urged Regan to Resign Quits His Post

President Reagan’s political director, Mitchell E. Daniels Jr., who in December suggested that Chief of Staff Donald T. Regan resign for the good of the President, has himself resigned, the White House announced Saturday.

Daniels, who had hinted he would leave the Administration after the 1986 elections, will become executive vice president and chief operating officer of the Hudson Institute, a policy research organization in his hometown of Indianapolis. He will also become a partner in the Indianapolis law firm Baker & Daniels.

In his letter of resignation to Reagan, dated Jan. 30, Daniels, citing 15 years of Republican Party and public service, said that “the time has come to establish a career in private life,” spokesman Roman Popadiuk said.

Daniels, former administrative assistant to Sen. Richard G. Lugar (R-Ind.), acknowledged that in the furor surrounding the Iran- contra affair he counseled Regan to quit in December and spare the President further embarrassment. Regan was reported to have declined the suggestion but without rancor toward Daniels.

As assistant to the President for political and governmental affairs, Daniels ran Reagan’s campaign for GOP candidates in the Nov. 4 election. Democrats regained control of the Senate by taking eight seats from the GOP.