Raul Castro sees economy reforms and U.S. talks

By Esteban Israel

CAMAGUEY, Cuba (Reuters) - Acting President Raul Castro asserted his leadership of Cuba on Thursday with promises of economic improvement and an offer of talks with the United States when the Bush administration is gone.

"Raul, Raul, Raul!" some 100,000 government supporters chanted during a Revolution Day speech one year after taking over from his brother.

He said Cuba's 80-year-old leader Fidel Castro, who is recovering from life-threatening surgery and has not appeared in public for a year, was increasingly active.

But Raul Castro's one-hour speech left no doubt that he is in charge for now.

He said salaries were too low -- a major complaint by Cubans-- and the country has to produce more food to feed its people. Deep reforms of its inefficient agriculture are on their way, he said.

Communist Cuba is open to receiving more foreign investment as long as it brings capital, technology and markets, he said.

"There won't be spectacular results. Time is needed," Raul Castro, who is 76 and considered to be more pragmatic than his ideologically-driven brother, told Cubans.

"Fidel is not here, but it's the same. We have him in our hearts and Raul is doing a good job," said Dignora, a labour union official wearing a red T-shirt and waving a Cuban flag.