Yes, that's the quote, but what's the argument?
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Try reading the whole thing, or at least try reading the surrounding material. It is obvious that he is speaking of membership in voto, which is described in Pope Pius XII's Mystici Corporis Christi (§103). He is not speaking of someone who is outside the Church, but someone who is in the Church, but who does not share the bond of membership. This distinction between "in" and "membership" is an important one that is discussed by Fenton at great length, acknowledged in Mystici Corporis Christi and its ghost-writer the great Dutch ecclesiologist Sebastiaan Tromp, and even contained-- if with different terminology-- in Bellarmine's great counter-reformation works on the Church Militant.
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In other words, there's nothing uniquely Vatican II-ish about any of this.
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One might argue (though you'd actually have to argue it, mind you) that the example Fellay gave was a poor one, and one to which the principles do not apply. But the principles themselves are solid and unassailable.