Deadline of June 30, 1948 was fixed for the transfer of power, even if the Indian politicians had not agreed by that time on the constitution.
The British would relinquish power either to:
Some form of central government
Existing provincial governments if the constituent assembly was not fully representative, i.e., if the Muslim majority provinces did not join.
British powers and obligations vis-a-vis the princely states would lapse with the transfer of power, but these would not be transferred to any successor government in British India.
Mountbatten would replace Wavell as the viceroy.
The statement contained:
Clear hints of partition.
Even Balkanisation of the country into numerous states.
In essence, this was a reversion of the Cripps Offer.
The provision of transfer of power to more than one centre was acceptable to Congress because:
The existing assembly could go ahead and frame a constitution for the areas represented by it.
It offered a way out of the existing deadlock.
However, the hopes of a settlement were shattered as the statement proved to be a prelude to the final showdown.
The League launched a civil disobedience movement to overthrow the coalition government in Punjab, feeling emboldened by the statement.
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