With all due respect to those who feel otherwise, I think that sometimes we get too caught up in the "translator's conceit" of the book, and second-guess things that should just be taken at face value.
I have no problem with assuming that the Gandalf described in the book is the true Gandalf. And based on what I've read from Tolkien, I think he'd agree. So I don't think that Gandalf is lying, or misconstruing Saruman's speech, or anything of the sort. If he tells us that's what Saruman said, why should we believe otherwise?
Yes, Gandalf is a manipulator to some extent, but lying is not one of his tools.
"I do not lie." - G the W
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"If you're referring to the incident with the dragon, I was barely involved. All I did was give your uncle a little nudge out of the door."
THE HOBBIT - IT'S COMING
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