[the letter is sealed with a blob of rainbow-gleaming metallic paint]
Hello Archibalds! You'd best watch yourselves, you've got a sneaky backstabber of an elf in your house, name of Cania. She's started on goblins in her own adventuring team, but she might move up to humans next! Even gnomes!
Those notes put up by the goblin boss are right, she's guilty as the turnip-rustler caught with a cart and shovel. Bunch of us were going in to whack some zombies we'd heard about in Lower, and this goblin mage wanted to give them a beating too. We let him along, cause there were a lot more of us than him and if he tried any sneaky stuff we'd all hit him. Plus, he was one of them goblins that like beating up goblin raiders, so he's not bad for a green bugger.
Anyway, we give all these dead things what for, then decide that legging it's a better plan after a whole horde of tough ghosts and things comes at us!
Just as we leave the main crypt, the daft elf bitch decides to summon a huge fire demon, attack the goblin and start a fight! We've got a horde of undead getting closer, a firey nuisance likely to hit us next, and a fight going on in the middle of our force! We kill the blasted demon, grab the gobbo's stuff, get out with the zombies right behind us and before we can grab that elf to get her to explain what the HELLS she just did, she vanishes!
Now of course, she's got the gobbo's boss so damned angry that he's threatening to start a punch-up with Upper and your mob. Now Ghyrrt might not get this is all just between the backstabber and the goblins, but I guess you're smarter than that, human. If you let him start a rumble with you that'll endanger other poor buggers in Upper, just to protect some filthy mole who betrays allies in the middle of a fight, you're daft indeed.
The goblin boss wants her dead or turned over to Lower. Let the elf face her actions, and either try and make up for the death, or fight the goblin boss. You think she was right, give her some magicky things to help, but she should have to face up to being a sneak, not you. She wants to go kill goblins, let her face them in a fair fight, not when they think she's fighting beside them, and not by calling up demons in the middle of her allies! If she kills the goblins, you got nothing to bother about. If the goblins get her, they'll be happy and they won't start a stupid fight with you.
I'd not have been that surprised if the gobbo mage betrayed us, but that elf never struck me as the traitor type. Goblin or not, it was on OUR side when she attacked it, and she picked a fight that nearly stopped us getting clear away from those undead!
Yours almost-eaten-by-zombies-ly, -Elwicket