RAUL CASTRO -- THE President of CUBA

Cuba's parliament named Raul Castro President on Sunday, ending nearly 50 years of rule by his brother Fidel but leaving the island's communist system unshaken.

In a surprise move, officials bypassed younger candidates to name a 77-year-old revolutionary leader, Jose Ramon Machado, to Cuba's No 2 spot - apparently assuring the old guard that no significant political changes will be made soon.

The retirement of the ailing 81-year-old president caps a career in which he frustrated efforts by 10 US presidents to oust him.


Raul Castro, 76, stressed that his brother remains ''commander in chief'' even if he is not president and proposed to consult with Fidel on all major decisions of state - a motion approved by acclamation.

Though the succession was not likely to bring a major shift in the communist government policies that have put Cuba at odds with the United States, many Cubans were hoping it would open the door to modest economic reforms that might improve their daily lives.

Raul Castro indicated at least one change is being contemplated: the revaluation of the Cuban peso, the national currency most people use to pay for government services such as utilities, public transportation and the small amount charged for their monthly food ration.

Cubans complain that government salaries averaging a little more than $19 a month do not cover basic necessities - something Raul Castro acknowledged in a major speech last year. But he said any change would have to be gradual to ''prevent traumatic and incongruent effects.''


In his first speech as president, Raul Castro suggested that the Communist Party as a whole would take over the role long held by Fidel, who formally remains its leader. The new president said the nation's sole legal party ''is the directing and superior force of society and the state.''

''This conviction has particular importance when the founding and forging generation of the revolution is disappearing,'' he added.

The US has said the change from one Castro to another would not be significant, calling it a ''transfer of authority and power from dictator to dictator light.''

Secretary of State Condoleezza Rice said Sunday Cubans have a right ''to choose their leaders in democratic elections'' and urged the government ''to begin a process of peaceful, democratic change by releasing all political prisoners, respecting human rights, and creating a clear pathway towards free and fair elections.''

Cuba's parliament chose a new 31-member ruling body known as the Council of State to lead the country. The council's president serves as the head of state and government.

The vote ended Castro's 49 years as head of the communist state in America's backyard. He retains his post as a lawmaker and as head of the Communist Party. But his power in government has eroded since July 31, 2006, when he announced he had undergone emergency intestinal surgery and was provisionally ceding his powers to Raul.