Eric J. Greenberg writes about this stunning new development in Forward this week [free subscription reqd.]:

The discovery of a secret 1946 Vatican letter, ordering French church officials not to return Jewish children to their parents if they were baptized while under church protection, has reignited the controversy over the World War II-era policies of Pope Pius XII, who is on the fast track to sainthood.

The 1946 letter, published last week in the Italian daily Corriere della Sera, indicates that Pius XII himself approved the directive regarding Jewish children saved by Catholics from the Nazis.

"If the children were entrusted [to the Church] by their parents and if their parents now claim them, they can be returned so long as these children have not received baptism" the letter stated, adding, "Children who have been baptized must not be entrusted to institutions that cannot ensure their Christian education."

Link.

There's nothing I can say about this. It's just despicable. One Rabbi sums it up well, though:

"After 60 years, the Vatican should come to terms with its record, once and for all," said Rabbi James Rudin, senior interreligious adviser to the American Jewish Committee. "This isn't going away."