Sauron Greater than Morgoth...

[Morwen]

In what context does Tolkien make this statement? Does "in my story" refer to the Legedarium as a whole or is he referring to LotR specifically?

[Raynor]

Originally Posted by Morwen

In what context does Tolkien make this statement? Does "in my story" refer to the Legedarium as a whole or is he referring to LotR specifically?

A fuller version of the paragraph (emphasis added):

Originally Posted by Letter #183

In my story I do not deal in Absolute Evil. I do not think there is such a thing, since that is Zero. I do not think that at any rate any 'rational being' is wholly evil. Satan fell. In my myth Morgoth fell before Creation of the physical world. In my story Sauron represents as near an approach to the wholly evil will as is possible. He had gone the way of all tyrants: beginning well, at least on the level that while desiring to order all things according to his own wisdom he still at first considered the (economic) well-being of other inhabitants of the Earth.

This part of some notes written by Tolkien, unsent to anyone, in regards to a positive review by W.H. Auden of the Return of the King. Taking into consideration that Sauron is described in LotR/Silmarillion/HoME as a servant/emissary/follower of Morgoth and, also, that it would seem that "story" would refer to LotR only, not the whole Legendarium, I believe that this statement about Sauron is LotR-level only.

[The Might]

Interesting...until now I kept thinking Sauron is supposed to be more evil, but Raynor brings a good argument against this.
I also wasn't sure about the meaning of the word "story" was in this context.