  It is important to be clear that we are concerned with the truth values of the propositions expressed by (1)-(3) at a described counterfactual situation, not what propositions those sentences would have expressed in those circumstances. (1) would have expressed a different proposition, a proposition about Charles and so false, were David to have uttered it in the described situation. But our claim is that the proposition expressed by David's actual utterance of (1) is true at the described counterfactual circumstance, while the propositions (actually) expressed by (2) and (3) are false at that circumstance.