Azad, the president of the Congress, conferred with the Mission on April 3 and stated that the picture that the Congress had of the form of government in future was that of a Federal Government with fully autonomous provinces with residuary powers vested in the units. Gandhi met the Mission later on the same day. He called Jinnah's Pakistan "a sin" which he, Gandhi, would not commit.

At the outset of his interview with the Mission on April 4 the Quaid was asked to give his reason why he thought Pakistan a must for the future of India.He replied that never in long history these was "any Government of India in the sense of a single government". He went on to explain the irreconcilable social and cultural differences between the Hindus and the Muslims and argued, "You cannot make a nation unless there are essential uniting forces. How are you to put 100 million Muslims together with 250 million people whose way of life is so different? No government can ever work on such a basis and if this is forced upon India it must lead us on to disaster."

The Second Simla Conference having failed to produce an agreed solution, on May 16, the Mission issued it's own statement.

The Cabinet Mission broadcast its plan worldwide from New Delhi on Thursday night, May 16, 1946. It was a last hope for a single Indian union to emerge peacefully in the wake of the British raj. The statement reviewed the "fully independent sovereign state of Pakistan" option, rejecting it for various reasons, among which were that it "would not solve the communal minority problem" but only raise more such problems. The basic form of the constitution recommended was a three-tier scheme with a minimal central union at the top for only foreign affairs, defense and communication, and Provinces at the bottom, which "should be free to form Groups with executive and legislatures," with each group being empowered to "determine the Provincial subjects to be taken in common". After ten years any Province could, by simple majority vote, "call for a reconsideration of the terms of the constitution". Details of the new constitution were to be worked out by an assembly representing "as broad based and accurate" a cross section of the population of India as possible. An elaborate method of assuring representation of all the communities in power structure was outlined with due consideration given to the representation of states as well as provinces.

The Quaid replied on the 19th , asking the Viceroy if the proposals were final or whether they were subject to change or modification, and he also sought some other clarification. The Viceroy promptly furnished the necessary explanations. It seemed as if the Quaid would accept the Viceroy's proposals. The Congress Working Committee met in Delhi on June 25 and by a resolution rejected the proposals, as "Congressmen can never give up the national character of the Congress or accept an artificial and unjust party, or agree to the veto of a communal group." Azad sent a copy of the resolution to the Viceroy and in his covering letter protested against the non-inclusion of a Muslim-Congressman from the Congress quota.

After the Congress stand had become known, the Working Committee of the Muslim League resolved to join the Interim Government, in accordance with the statement of the Viceroy dated 16th June. The interpretation of the Quaid-i-Azam was that if the Congress rejected the proposals, the League accepted them, or vice versa,the Viceroy would go ahead and form the interim Government without including the representatives of the party that decided to stand out. But the interpretation of the Viceroy and the Cabinet Mission was different from that of the Quaid-i-Azam.

It became clear that the protracted negotiations carried out for about three months by the Cabinet Mission did not materialize in a League-Congress understanding, or in the formation of an interim Government. Towards the end of June, the Cabinet Mission left for England, their task unfulfilled.

It had, however not been a complete failure. It was clear to the Indians that the acceptance of the demand for Pakistan would be an integral part of any future settlement of the Indian problem. In the meantime the League and the Congress were getting ready for elections to the Constituent Assembly.

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