admittedly I'm way over my catholic dogmatic (is that even a word) head....But, if my research is telling me anything, it sounds like you are referring to 'salvation by grace alone'. Which sounds like it was a controversial concept from the start.
Here is a page addressing the issue at Vatican II
http://www.wayoflife.org/fbns/howrome.htm
"... [Christ] also willed that the work of salvation which they preached should be set in train through the sacrifice and sacraments, around which the entire liturgical [ritualistic] life revolves. Thus by Baptism men are grafted into the paschal mystery of Christ. ... They receive the spirit of adoption as sons" (Vatican II, Constitution on the Sacred Liturgy, Chap. 1, I, 5,6, pp. 23-24).
Non baptized and non Christians are given a chance for salvation through faith and 'grace', is a two cell embryo capable of faith in a God he has no knowledge of?