The Vatican urged China's communist government yesterday to engage in constructive dialogue to ease tension and achieve full diplomatic relations and a normal life for the Roman Catholic Church there.

A Vatican statement issued after a two-day meeting on how to deal with China, where authorities do not allow Catholics to recognise the Pope's authority, also said Pope Benedict would be writing a personal letter to the Catholics of China.

The statement was a clear olive branch by the Holy See to Beijing's communist government after months of conflict over the appointment of bishops.

Since his election in April 2005, Pope Benedict has made normalising relations with China one of the political and pastoral priorities of his papacy. The Vatican statement did not say when he would write the letter to China's Catholics.

The meeting, chaired by Vatican Secretary of State Cardinal Tarcisio Bertone, also concluded that "almost all" bishops and priests in China were loyal to the Pope, in contrast to the official position of their government. It said China's Catholic community was growing and assured Beijing, which in the past has accused the Vatican of interfering in internal affairs, that the Church wanted to be an active contributor to the well-being of all Chinese people.

The meeting called for "a normalisation of relations at the various levels, with the aim to allow peaceful and fruitful life in the faith of the Church and to work together for the good of the Chinese people and peace in the world".

There are about 10 million Catholics in China, divided between an underground Church loyal to the Holy See and the state-approved Church that respects the Pope as a spiritual figurehead but rejects effective papal control.