It is believed that the Cabinet Councils held on Thursday
and Friday had under their consideration the question whether we should or should not withdraw from Uganda. The British East Africa Company has given notice to the Government that their resources are exhausted, and that, unless the Govern- ment undertake to help them, they must withdraw next December; and it is quite obvious that this is no empty threat. But if the Company withdraws, and no agents of the Imperial Government take their place, we lose our rights over Uganda and the Upper Nile ; and the French, the Germans, and the Congo Free State can race each other for the prize. Under these circumstances, we can see no way out of the difficulty except the assumption by the Government of the responsi- bilities which the Company cannot fulfil. We cannot lose all hold on the great internal water-ways of Africa. At the same time, the incident is a disagreeable one, and the system of "Chartered Companies" stands condemned. That system has all the disadvantages, and none of the advantages, of simple annexation.
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