The key sentences say, "Fr. Tran regrets any concern or hurt caused by the misuse of the term 'mortal sin' in this context. The Diocese concurs with Fr. Tran's retraction."
Obviously, this statement is a retraction by the Diocese; after all, a spokesman had said only a week ago that the Diocese stood by Fr. Tran's "mortal sin" judgment.
The Diocese's statement mentions the L.A. Times front-page article of May 28 about the situation at St. Mary's by the Sea Parish in Huntington Beach; so that unwelcome (from their standpoint) publicity no doubt figured in the decision to make the retraction. But no one can deny that the parishioners' defense of their rights and of the Church has not played a part, too.