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I have found the details in Soviet-Pakistan Relations and Post-Soviet Dynamics, 1947–92 by Hafeez Malik. The following is all from the above cited book.
It started in ‘56 when a meeting was called to address the Afghan Problem. Though Pakistani Army Chief General Ayub Khan proposed some “strategic bombing and armoured thrust”, the Pakistani Ambassador to Afghanistan proposed a different path, a confederation.
The Ambassador first met Afghan King Zahir Shah and got his assent for the plan. After taking the Royals into confidence, he met Daud Khan (Afghan Royal premier) and removed his doubts. A meeting was arranged between the heads of state, at which Daud Khan proposed:
It was also proposed that the new confederation would be a constitutional Monarchy. Pakistani PM Noon agreed to have Zahir Shah as Country's monarch and constitutional head and Afghanistan agreed to become a parliamentary democracy like Pakistan.
"In his grand way [Noon] said we should have no difficulty accepting King Zahir Shah as the constitutional head of state. 'After all, for some time after independence we had a Christian queen. Now we would have a Muslim man'. President Mirza concurred in this."
And
I noted that Pakistan was a democratic country and asked what would be the position of the King. He promptly replied, 'We shall be a republic if Pakistan so desires'.
At that stage, The US welcomed this proposal and was ready to incorporate Afghanistan into its sphere. US not only was ready to expand the Karachi harbour but was also ready to expand the the Afghanistan rail network to pass Jalalabad into Torkham and the Chaman railway to Jalalabad.
As to the USA, Aslam Khattak says, "The Americans agreed to help in a big way. They were prepared to enlarge Karachi harbour and to develop another port. They agreed to provide fifty locomotives and five hundred wagons and to extend the Chaman railway to Kandahar and the Torkham rail line to Jalalabad. Sardar Daud wanted them to extend the Jalalabad railhead to Kabul and to commit to connect Kandahar and Kabul by rail." They had actually got into post- confederation details.
Relationships were cordial and Things were speeding up with post confederation details starting to be discussed and then just as abruptly the movement had started, it came to an end. There is no conclusive reason given for this but following are thought to be possible causes of the fall out:
Upvote:0
The Afghan Ambassador to UN proposed the confederation to the Americans in 1952. Some Pakistani officials welcomed it but others were concerned that the Afghans were being duplicitous because they wanted 'Pashtunistan' to be separate entity. In other words, under cover of a federation, the Afghans were trying to divide Pakistan and reclaim their former territory in the North West and Baluchistan. However, the Pashtun monarchy and dominant class also were wary of their Uzbek, Tajik and Hazara minorities. The problem was that Pashtun areas are either ungovernable or not worth governing. America too turned lukewarm. Pakistan and Turkey had professional armies whereas the Afghan army was weaker than some of the tribal militias.