Hypothetical ethical dilemma

Suppose that someone went to a fair bit of time and effort to send you a really nice package in the mail with a very thoughtful gift.

When the package arrives it has been damaged in transit.

When the person asks you whether you received the package, do you tell them yes and that it was very nice?

Or do you tell them that you appreciated the thought and savoured the gift mentally, but admit to the tragic end to the goods?

Please discuss and revert with your conclusion. In appreciation, I will provide as many posts as there are commenters within as many weeks... I will post more often if you help me out.