The upcoming Republican convention, which looked to be a showcase of heavily outmatched candidates for Governor and Lieutenant Governor, now promises a power struggle that some hope will revitalize the party.

Representative Andrew Natsios (R--Holliston), the Republican Party chairman since 1980, announced his campaign for state auditor last week, but maintained that he will not give up his chairmanship until after the November election.

Natsios' refusal to step down upon announcing opened the door for forces in the Republican party dissatisfied with Natsios' leadership, led by former Senatorial candidate Ray Shamie and Joseph D. Malone, manager of the Shamie Foundation, to initiate their attempt to unseat Natsios in favor of Malone. Malone said he didn't consider the idea of a motion to unseat Natsios in the 80-member GOP state committee.

"I didn't make a motion in the state committee because I knew that Natsios had 40 or more members behind him."

Instead, Malone said he plans to take the case to the "rank and file" by presenting a motion of no confidence in Natsios on the convention floor to all the delgates.

Malone expects his motion to be approved by a majority of the delegates. "With the calls that I've been getting, I'm very optimistic. I'm getting a groundswell of support."

If the delegates approve the motion, Malone says he is confident "Andrew [Natsios] would respond to the rank and file" and resign.

But Republican political consultant Jack Flannery disagreed. "The resolution is all smoke and fury." The consultant said only the committee can remove Natsios. Flannery said that Natsios will not resign even if the motion passes.

Flannery called the upcoming battle "the wrong fight at the wrong time" and feared that it will over-shadow the convention.

Malone claimed that the fight will not weaken the party but will strengthen it. "Quiet following is not what is necessary to make a strong party. Competition in politics is what makes a party grow. The party needs a jump start and this has woken a lot of people up."

Malone maintained that although he and others were "concerned that the Republican party was not progressing at the speed it should," the Chairman's decision to run for auditor was the crucial factor behind the move for his ouster.

"Why should we have a chairman who tries to do two jobs at once," Malone said. "The party needs a full-time chairman. If Andrew hadn't announced, this wouldn't have happened."

Malone did admit that he probably would have supported an opposition candidate for the chairmanship in the November election had Natsios run. He criticized Natsios for failing to capitalize on the nationwide popularity of President Reagan and the Republican party that Malone claims helped Republicans to victories in nearby Rhode Island and New Jersey.

Malone predicted gains in several areas if he assumed the chairmanship.

"With a full time chairman," Malone said, "we could raise a lot more money. Right now the party has $40,000 in the bank. I think I can raise serious money by making personal visits."

Malone added that the party had been the recipient of bad press recently, particularly over the placing of advertisements to recruit people to run for the state legislature as Republicans, and that he would address this problem.

Malone said translating nationwide Republican success into success in Massachusetts was "not so much targeting prticular groups as trying to erase the image that we can't win. We can win. No trick plays, just the basics with full time leadership."