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What direction was given in Indian Independence Act, 1947 about the political integration of Princely States during the partition of India?

What policy was introduced by the British authority about the political integration of princely states of India in 1947 during the partition of India?

Was that policy official?

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    Couldn't you just read the text of that act? – user5001 Oct 11 '14 at 11:23
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A few things to note regarding this - 1. Official stand was that the state will lapse to independence but Mountbatten told almost every ruler that independence is impossible. 2. Reading's letter to the Nizam of Hyderabad clearly stated that Hyderabad is a subsidary of British Empire and not an independent state/state in alliance. While the British officially professed the first stand, India took the second. Seeing the impracticalities of independence, none but a handful pitched for independence - Hyderabad, Kashmir, Travancore, Manipur and Sikkim.

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