Unlike the provincial portion of the act, the federal portion was to go into effect only when half the states by weight agreed to federate. This agreement was never reached, and the federation's establishment was indefinitely postponed after the outbreak of the
Second World War. The federal part of the act only entered into effect in modified form, separately in respect of the
Dominion of India and
Dominion of Pakistan, pursuant to the
Indian Independence Act 1947.
Terms The act provided for dyarchy at the centre. The British government, in the person of the
Secretary of State for India, through the
Governor-General of India (the
Viceroy of India), would continue to control India's financial obligations, defence, foreign affairs and the
British Indian Army and would make the key appointments to the
Reserve Bank of India (exchange rates) and Railway Board and the act stipulated that no finance bill could be placed in the Central Legislature without the consent of the Governor-General. The funding for the British responsibilities and foreign obligations (e.g. loan repayments, pensions), at least 80 per cent of the federal expenditures, would be non-votable and be taken off the top before any claims could be considered for (for example) social or economic development programs. The Viceroy, under the supervision of the Secretary of State for India, was provided with overriding and certifying powers that could, theoretically, have allowed him to rule autocratically.
Objectives The federal part of the act was designed to meet the aims of the Conservative Party. Over the very long term, the Conservative leadership expected the act to lead to a nominally
dominion status India, conservative in outlook, dominated by an alliance of Hindu princes and right-wing Hindus which would be well disposed to place itself under the guidance and protection of the United Kingdom. In the medium term, the act was expected to (in rough order of importance): •
Win the support of moderate nationalists since its formal aim was to lead eventually to a Dominion of India which, as defined under the Statute of Westminster 1931 virtually equalled independence; • '''Retain British control of the Indian Army, Indian finances, and India's foreign relations''' for another generation; •
Win Muslim support by conceding most of
Jinnah's Fourteen Points; •
Convince the princes to join the federation by giving the princes conditions for entry never likely to be equalled. It was expected that enough would join to allow the establishment of the federation. The terms offered to the princes included: • Each prince would select his state's representative in the federal legislature. There would be no pressure for princes to democratize their administrations or allow elections for state representatives in the federal legislature. • The princes would enjoy heavyweight. The princely states represented about a quarter of the population of India and produced well under a quarter of its wealth. Under the act: • The upper house of the federal legislature, the Council of State, would consist of 260 members: 156 (60%) elected from British India and 104 (40%) nominated by the rulers of the princely states. • The lower house, the Federal Assembly, would consist of 375 members: 250 (67%) elected by the legislative assemblies of the British Indian provinces; 125 (33%) nominated by the rulers of the princely states. •
Ensuring that the Congress could never rule alone or gain enough seats to bring down the government This was done by over-representing the princes, by giving every possible minority the right to separately vote for candidates belonging to their respective communities (see
separate electorate), and by making the executive theoretically, but not practically, removable by the legislature.
Gambles taken •
Viability of the proposed federation. It was hoped that the gerrymandered federation, encompassing units of such hugely different sizes, sophistication and varying forms of government from the autocratic princely states to democratic provinces, could provide the basis for a viable state. However, this was not a realistic possibility (see e.g. The Making of India's Paper Federation, 1927–35 in Moore 1988). In reality, the federation, as planned in the act, almost certainly was not viable and would have rapidly broken down with the British left to pick up the pieces without any viable alternative. •
Princes seeing and acting in their own long-range best interests. That the princes would see that their best hope for a future would lie in rapidly joining and become a united block without which no group could hope, mathematically, to wield power. However, the princes did not join, and thus exercising the veto provided by the act prevented the federation from coming into existence. Among the reasons for the princes staying out were the following: • They did not have the foresight to realize that this was their only chance for a future . • Congress had begun and would continue, agitating for democratic reforms within the princely states. Since the one common concern of the 600 or so princes was their desire to continue to rule their states without interference, this was indeed a mortal threat. On the cards, this would eventually lead to more democratic state regimes and the election of states' representatives in the federal legislature. In all likelihood, these representatives would be largely congressmen. Had the federation been established, the election of states' representatives in the federal legislature would amount to a Congress coup from the inside. Thus, contrary to their official position that the British would look favourably on the democratization of the princely states, their plan required that the states remain autocratic. This reflects a deep contradiction in British views of India and its future. : :Under the act, : :* They were not a cohesive group and probably realized that they would never act like one. :* Each prince seemed consumed by the desire to gain the best deal for himself, were his state to join the federation: the most money, the most autonomy. •
That enough was being offered at the centre to win the support of moderate nationalist Hindu and Muslim support. In fact, so little was offered that all significant groups in British India rejected and denounced the proposed Federation. A major contributing factor was the continuing distrust of British intentions for which there was
considerable basis in fact. In this vital area the act failed Irwin's test: : •
That the wider electorate would turn against the Congress. In fact, the 1937 elections showed overwhelming support for Congress among the Hindu electorate. •
That by giving Indian politicians a great deal of power at the provincial level, while denying them responsibility at the centre, it was hoped that Congress, the only national party, would disintegrate into a series of provincial fiefdoms. In fact, the Congress High Command was able to control the provincial ministries and to force their resignation in 1939. The act showed the strength and cohesion of Congress and probably strengthened it. This does not imply that Congress was not made up of and found its support in various sometimes competing interests and groups. Rather, it recognises the ability of Congress, unlike the British Raj, to maintain the cooperation and support of most of these groups even if, for example in the forced resignation of Congress provincial ministries in 1939 and the rejection of the
Cripps Offer in 1942, this required a negative policy that was harmful, in the long run, to the prospects for an independent India that would be both united and democratic.
Indian reaction No significant group in India accepted the federal portion of the act. A typical response was: However, the Liberals and even elements in the Congress were tepidly willing to give it a go: ==Receptions==