Pope Benedict XVI has praised the Australian government for apologising to the country's indigenous people for past injustices.
Speaking at his first public appearance in Sydney, he said it was a courageous move that had offered hope to other disadvantaged people around the world.
PM Kevin Rudd formally apologised to Australian Aborigines early this year.
(Pic- The Pope is in Sydney to lead the Catholic Church's World Youth Day)
The Pope is in Sydney for the Catholic Church's World Youth Day, expected to attract some 200,000 young Catholics.
He made his remarks at a short welcome ceremony led by Mr Rudd.
The prime minister said the pontiff was "truly among friends" in Australia and that the country was honoured to have him there.
'Concrete steps'
The Pope, who arrived in Australia on Sunday, began his first full day of events on Thursday to celebrate the World Youth Day festival.
He will receive a traditional Aboriginal welcome ceremony, to be followed by a tour of Sydney Harbour by boat and an address to crowds gathered on the waterfront.
The pontiff said: "Thanks to the Australian government's courageous decision to acknowledge the injustices committed against the indigenous peoples in the past, concrete steps are now being taken to achieve reconciliation based on mutual respect.
"This example of reconciliation offers hope to peoples all over the world who long to see their rights affirmed and their contribution to society acknowledged and promoted."
Australia's Aborigines make up about 2% of the population. They have consistently higher rates of ill-health, unemployment and imprisonment than other Australians and a life expectancy 17 years lower.
Protests expected
Mr Rudd issued his landmark apology for the abuse and discrimination the country's indigenous people have endured since European colonisation in February, soon after taking office.
In his remarks, the Pope also commented on Australia's "serious commitment" to the environment.
During the course of the visit - his ninth outside Italy - he is also expected to apologise for decades of sexual abuse of children by priests.
Demonstrators have vowed to protest against the Church's stand on homosexuality and birth control.
The Pope will close his trip by presiding over an open-air Mass on Sunday at Sydney's Randwick Racecourse, which is expected to draw hundreds of thousands of pilgrims.
Source from- http://news.bbc.co.uk/2/hi/asia-pacific/7510862.stm