Raul Castro named Cuba's new president

"Fidel is irreplaceable; the people will continue his work when he is no longer with us physically, though his ideas always will be here," Raul Castro, 76, told lawmakers in his acceptance speech. "I accept the responsibility I have been given with the conviction I have repeated often: there is only one Commander in Chief of the Cuban Revolution: Fidel is Fidel and we all know it well."                      Â

Fidel Castro, 81, who led Cubas revolution, had temporarily handed his younger brother the reins of power in July 2006 when he was hospitalized for intestinal surgery. But Fidel has not been seen in public since, and on Tuesday he made his bombshell announcement that for health reasons he was standing down as president of the country he had led since 1959.     Â

Shortly after being named president, Raul Castro on Sunday named General Julio Casas Regueiro to replace him as head of the countrys armed forces. Casas Regueiro, 72, was also elected to Cubas executive council. The newly-sworn president was full of praise for his successor as Cubas top military officer. "I have always had criticism for generals in our armed forces, but in 50 years I dont recall having ever criticizing General Julio Casas Regueiro," Raul Castro told lawmakers.

Meanwhile, in the first US reaction to Raul Castros appointment as president by the national assembly, the top US diplomat for Latin America Tom Shannon said washington saw some hope for change. "There is a possibility and potential for change in Cuba, but those changes will have to be born inside Cuba," Shannon said, adding that the historical changes taking place in Cuba were very "significant."

In a sign that change may take some time though, Raul Castro said he would consult with his brother on major issues. And he vowed to be on guard against Cubas powerful northern neighbor the United States. "We have taken note of the offensive and openly meddling declarations by the Empire (as Cuba refers to Washington) and some of its closest allies," he said.

In defiance of US-led calls for democratic change, Fidel Castro this week ruled out any betrayal of the Cuban revolution ahead of Sundays vote. The first to congratulate Raul Castro on becoming president was long-time Cuba ally, Venezuelan President Hugo Chavez, who denied speculation that his relations with the new leader were more distant than with Fidel. "Nothing is going to change, we are going to continue to be united, only in unity can we progress to further victory," Chavez said.

After years in Fidels charismatic shadow as Cubas number two and defense minister, Raul Castro faces massive challenges, including preparing the transition to a newer generation in power and reforming the economy. With half of Cubas farm land idle, monthly salaries averaging 15 US dollars, national transportation near collapse, and housing and food in short supply, the outlook is bleak.

In the 19 months since he took over as temporary leader, Raul Castro has made some minor adjustments in the economy, but has promised bigger changes. Raul Castro said in his acceptance speech he would begin eliminating some economic restrictions in coming weeks, but he did not offer details. He has made it clear however that everything will take place "within socialism" and that solutions to the countrys problems will come "little by little."