"Intelligence" is a nebulous, artificial concept. Obviously there exist differences between individuals in ability to process and retain information in certain ways, but there is no one such thing as 'intelligence'. Mental abilities are complicated, multidimensional and not directly observable -- they are therefore poorly understood. They are not a unitary, easily conceptualized or measured thing. To take one particular conceptualization of mental abilities, and one particular quantified measure of them based on that arbitrary conceptualization, and then to reify that quantification (treating it as if it were a real entity) is a risible compounding of errors.
Even if we were to accept, for the sake of argument, that 'intelligence' as a single, quantifiable entity exists and that it can be reliably measured (which it cannot), the differences between this measure for different people of the same group (by gender, ethnicity or whatever) are much greater than the small differences purportedly found between groups, making any blanket statements about group differences patently meaningless. Add to that the potential for gross abuse of the concept, the measures, and the group differences, and we now have a dangerous
So there's really no point in discussing such group "differences", is there?
As to Mr. Watson's statement that "There is no firm reason to anticipate that the intellectual capacities of peoples geographically separated in their evolution should prove to have evolved identically", I would point out that the thousands of ethnic groups which some artificially divide into 'races', a biologically nonsensical categorization, have emerged in only thousands to perhaps tens of thousands of years, a mere fraction of the history of homo sapiens, and there is rather no firm reason to anticipate that the intellectual capacities of peoples geographically separated in this brief moment of evolution should prove to have evolved disparately, especially in light of the tiny genetic differences identified between these groups relative both to the size of the human genome and to the early establishment (between 1.5 and 2.5 million years ago) of the large cranial capacity of the genus Homo.
Mr. Watson states "All our social policies are based on the fact that their intelligence is the same as ours - whereas all the testing says not really", but he conveniently ignores factors such as the cultural bias in IQ tests, and the inequality in educational opportunities which grossly skew such measures.
Finally, the linked report states:
He said there was a natural desire that all human beings should be equal but "people who have to deal with black employees find this not true".
Anyone who can't see that Mr. Watson has a racist agenda to pursue is either mentally defective or spiritually tarnished. He has also made openly sexist and homophobic remarks, and quite frankly, it is a shame that his position as eminent scientist has given him the stage to air such ignorant and hateful views. He is an embarrassment to the scientific community, and should preferably be given an early funeral.