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THANKS TO CANADA, Buffalo is bucking the recession that is gripping the country, according to a Colorado-based newsletter.

"If they're singing the blues in the Big Apple . . . they're singing 'O Canada' in Buffalo," says the November issue of the Clayton-Fillmore Report: Perspectives on Economics and Real Estate.

"As the economies of New York City and its suburban metro areas continue to languish, the 1989 Free-Trade Agreement with Canada has stimulated economic growth in long-gloomy Buffalo," says the monthly newsletter, which is read by more than 600 bankers, real estate developers and stockbrokers across the country.

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