How did this turn out in the end?
I told him, a variation of what I wrote in the OP. He came back with a quite calm and reasonable email, saying he understood the situation.
That was all, and he is now on holiday, so if there is to be any fallout from it via a bitterness towards me, I wont know yet.
I think he will likely just forget about it as he would be imo (trumpet blowing) taking a step back if he does sack me off.
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