KIRKLAND FIGHTING BACK RUMORS OF FAILING HEALTH DISCOUNTED.(Main)

Byline: Peggy Simpson Hearst News Service

AFL-CIO President Lane Kirkland is fighting a two- fold battle these days: to regain his strength after difficult cancer surgery and to counter rumors that he's sicker than he says and may have to retire soon.

His aides and presidents of unions in the labor federation that he heads say Kirkland seems to be making headway on both fronts.

He plans to preside next week at a closed two-day meeting of the AFL-CIO executive council and then answer questions publicly at two news conferences. In late May, he plans to chair a regional AFL-CIO meeting in Chicago in which 1988 presidential candidates will be discussed.

Doctors removed a …