There are strong voices circulating inside the Vatican at an high level that the first version, that of an "irreformabile" ,i.e. unreformable islam be the right one.
So most likely the Pope said it in a bout of candor, in a trusted circle of friends and ex-pupils, but the phrase is to be kept secret because it could be damaging to the vatican traditional prudent approach to such problems.
It is not a secret that the Church avoided direct word confrontation with national - socialism while actually disapproving strongly with its persecution of the hebrew and slavic peoples, so most likely this is today's approach with Islam.
The Vatican hyerarchy seems to be quite worried about the islamic advance in Europe, a reporter recently said that a bishop, speaking at a private dinner to qualified people, anticipated the forecasting of an islamic Europe by Lewis of several decades, mantaining that Europe will likely be islamicized not in one hundred years, but in a few decades.
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