A federal state consists of two sets of government, namely, central or federal and provincial (regional). The provinces are known as the units of a federation. They are often called ‘states’ as in India and the U. S. A. But here the term ‘state’ is loosely used.

The units of a federation like Orissa, West Bengal in India, do have population, territory and government but they have no sovereign power. They cannot have independent foreign policy like declaring war, concluding peace or making treaties with foreign states.

They, too, enjoy limited power under their respective constitutions. Their government can be taken over, as in India, by the Union government on the ground of failure of the constitutional machinery of the state.

Certain countries enjoy dominion status. The Statute of Westminster, 1931, recognises them not only as autonomous units, but also as equal in status to the mother country. They are also free to secede from the British Empire when they desire.

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The British Parliament has only nominal control over them. The laws are passed by their own parliaments and their governments are responsible to parliaments. They are independent internally and externally and are members of the U. N. Therefore, the British Dominions like Canada, Australia, New Zealand are states with ail attributes.