Papal Nuncio Antonio Franco was seemingly referring to Pope Benedict XVI's reinstatement of bishop Bishop Williamson, who has denied the full extent of the Holocaust and says there were no gas chambers. The move sparked an outcry among Israelis and Jews across the world.

Williamson later apologized for his remarks.

Yad Vashem chairman Avner Shalev expressed satisfaction at Franco's comment, saying that the conference was a step toward "building trust and creating dialogue, in the wake of the latest crisis with the Vatican."

Franco was speaking at a conference held by both Israel's Yad Vashem Holocaust memorial and the Vatican on the actions of Pope Pius XII during the Holocaust.

The joint conference was an effort to clear the air between Yad Vashem and the Vatican following another incident that strained relations two years ago.

Then, the Vatican envoy to Israel threatened to cancel his participation in the annual Holocaust-day memorial, as a result of a controversial caption placed under a picture of Pius XII in the museum. The caption stated that the Pope's response to the Holocaust was questionable and that he did not do enough to aid Jews.

Franco also said on Tuesday that Pope Benedict's upcoming tour of Israel will be a religious pilgrimage - not a political mission.

Benedict will end the visit by celebrating Mass in the Galilee - the area in northern Israel where Jesus lived and preached.