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Former Vice President Dan Quayle warned fellow Republicans Thursday that continuing to drift away from core, conservative policies is a "recipe for defeat" because it will lead to a third-party candidacy.

"Look around. Right here in New Hampshire, a sitting senator, Bob Smith, has left the party. Pat Buchanan is on the verge of bolting to the Reform Party," the presidential hopeful said in a breakfast speech.

"There is a genuine frustration among rank and file Republicans, who see little difference between the Republican establishment and the Democratic establishment," he said. "They see the Republican leadership more concerned with winning than with the ideas that make our party great."

Quayle said he could unite the diverse factions in the party and bring independents and so-called "Reagan Democrats" on board by emphasizing key issues.

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