CASTRO TOUTS CUBA'S ECONOMY AT REVOLUTION RALLY.

Byline: Associated Press 

Speaking to a crowd of tens of thousands gathered to commemorate the Cuban revolution, President Fidel Castro said Cuba's economic recovery proves the failure of U.S. efforts to isolate the Communist island.

``The country is recovering slowly,'' Castro said. ``I say that we are on a good path. . . . I say that we can resist.''

The bearded 69-year-old leader, dressed in his trademark olive military drabs and cap, referred to reports this week that Cuba's gross domestic product grew 9.6 percent during the first half of this year. He said it shows that the Helms-Burton Law, passed by the U.S. Congress earlier this year to tighten a 36-year embargo of Cuba, has not had its desired effect.

``The 9.6 is a salute, is a message to Mr. Helms and Mr. Burton,'' Castro said to cheers from party faithful who traveled to this northeastern province from throughout the nation.

For a change, Cubans at this year's July 26 celebration had something to cheer about. Despite stiffened U.S. sanctions, the economy is growing faster than at any time since Cuba lost critical aid from Communist bloc trading partners in the late 1980s.

So instead of the austere affairs of recent years, Communist Party ward leaders organized mass revelry - with celebrants brought in by train, bus and even plane. The jamboree began Thursday night.

``Long live the 26th!'' shouted Marta Labrada, a Communist Party block leader, as she and her neighbors celebrated the holiday with a live orchestra and a thick pork stew - known as ``caldosa'' - bubbling over an open fire in the middle of the street.

``We have gone through some difficult years,'' said Labrada, a 38-year-old social worker in charge of her neighborhood block's ``vigilance'' to the Communist cause. ``But the economic situation is getting better. We even have more resources for the fiesta of the 26th.''