The jury were played part of a covert recording of a conversation between Swain and the witness when Swain was at Manawatu Prison.
Swain can be heard asking the witness about the watch.
"Is it still receiv, recoverable or cause what I was going to do," Swain says in the recording, before the witness says it might be possible to get the watch back.
Whispering, Swain then says: "Yeah, I was going to say what I was thinking is, um, I thought if we got the watch and we ****** make up a little note and if you get it sent from somewhere up the North Island or Auckland or something, I thought, what I was thinking, I thought **** if I can get something like, um, ya know, let's put it in a postie bag in an envelope sent to the Times, Manawatu Standard, just with a wee note to say, well 'sorry bro, shouldn't have tried to rip us' or something, 'other guy', ya know."
Swain tells the witness to watch his "phones and stuff" and make sure no fingerprints can be left on the bag, and that the friend they could post it to in Auckland could post it back, but should avoid being caught on camera.
"Just put it in a post box somewhere on the road in Auckland and just have something like, um, aw, aw, um, 'the bro Whets shouldn't have tried to rip me' or something."
He said it would "create another bit of doubt for me".
During the conversation Swain also talks about police seizing a green ute of his, which, he whispered to the witness, "had some blood on the back of it because where the body was lying". He made reference to "guys" coming and taking "him" out of the ute.
The defence case is that Mr Hansen showed up to Swain's Akers Rd property in Linton already fatally wounded by something else, and died before Swain could call 111. Swain later got rid of the body, the defence say.
Defence lawyer Mike Antunovic asked the witness whether Swain had told him Mr Hansen was dead on his property, as opposed to Swain saying he killed Mr Hansen.
The witness disagreed. He also disagreed when Mr Antunovic suggested Swain said two men had come to the property, and they were responsible for Mr Hansen's death.
Mr Antunovic asked the witness whether Swain had said he was afraid of the two men and they "weren't the sort of people that you go to the police about". The witness disagreed.
"I put it to you that what you've been telling us since yesterday about what you and Neil talked about that evening is garbage, you've made it up," Mr Antunovic said.
The witness said it was not, and he had nothing to gain by making it up.
Mr Antunovic pointed to inconsistencies between the witnesses evidence in court and statements he made to police, and said CCTV footage showed Swain's car heading towards the witness' town about 8.30pm, despite the witness saying Swain had visited him in the afternoon.
The witness said Swain had "other friends" he might have been visiting in that town, and Mr Antunovic pointed to part of the transcript of the covertly recorded conversation where Swain said he couldn't remember having any friends in that area.
Cross examination will continue today.
