After discussions with the chief political leaders in India, Lord Mountbatten made a proposal for the transfer of power. Having obtained the sanctions of the British government, he announced the plan on 3rd June 1947. The proposal was as under:

• As there is no unanimity about the constitution, partition of Indian has become imperative. India would be divided into two states, India and Pakistan.
• The provinces of Punjab and Bengal would be divided according to the decisions of the Muslim and non-Muslim members of their legislatures.

• The decision of the amalgamation of the North-West Frontier Province, British Baluchistan and Silhet district in Assam into either of the two new states should be based on plebiscite in these regions.
• The Sindh Legislative Assembly would determine whether Sindh should be amalgamated with India or Pakistan.
• The British administration would leave India in august 1947, handling over rule to India and Pakistan, two sovereign States. A border commission should be appointed to define their borders.
• Princely states should decide for themselves whether to join one of the two nations or to remain independent.