No. Please post where he said that. Otherwise, the only place found so far has been from Shioda writing what Ueshiba told him. Even then, you have it wrong.
Sure, will be fun finding sources and citing for us, but this will take time. The distinction I have read & heard was in aikido application for protection, not in the dojo.
Your declaration, "...Even then, you have it wrong..." reads intrinsically wrong in it self. If you got it right then be positive about it and tell us.