Maybe you just did not include it, but your javascript is missing some stuff. Try this - I believe it will work in both RS and the portlet.
<script type="text/javascript">
var fW = (typeof getFormWarpRequest == "function" ? getFormWarpRequest() : document.forms["formWarpRequest"]);
if (!fW || fW == undefined) {
fW = ( formWarpRequest_THIS_ ? formWarpRequest_THIS_ : formWarpRequest_NS_ );
}
fW._oLstChoicesState[0].text = 'NATIONAL';
</script>
But, that is actually going to change the text of the first item in your dropdown list. If instead you want to find and pick one of the items, you'll have to loop through the options and set .selected true. If you know the index of the selected item, you can just set the .selected property to true directly.