Person 1: We would kill bears, if we were bored.
Person 2: What did person 1 say?
Person 3: Er sagte, dass wir …
I’m not sure how person 3 would respond. He’s using indirect speech to report something said in the subjunctive 2.
According to this page:
If the original quotation contained a [subjunctive II] form, it is retained:
Ich würde es tun, wenn ich könnte, aber ich bin jetzt zu krank.
I would do it if I could, but now I am too sick.This becomes:
Er würde es tun, wenn er könnte, aber er sei jetzt zu krank.
So I keep any subjunctive 2 stuff, and everything else becomes subjunctive 1. Is that correct?