Diplomacy
In 1721 Osterman concluded the Peace of Nystad with Sweden, and was created a baron for his services. In 1723 he was made vice-president of the ministry of foreign affairs for bringing about a very advantageous commercial treaty with Persia. Peter also constantly consulted him in domestic affairs, and he introduced many administrative novelties, e.g. "the Table of Ranks," and the reconstruction of the College of Foreign Affairs on more modern lines.
During the reign of Catherine I of Russia (1725–1727) Osterman's authority still further increased. The conduct of foreign affairs was left entirely in his hands, and he held also the posts of minister of commerce and postmaster-general. On the accession of Peter II of Russia Osterman was appointed governor to the young emperor, and on his death (1730) he refused to participate in the attempt of Demetrius Galitzne and the Dolgorukovs to convert Russia into a limited constitutional monarchy. He held aloof till the empress Anne was firmly established on the throne as autocrat. Then he got his reward. His unique knowledge of foreign affairs made him indispensable to the empress and her counsellors, and even as to home affairs his advice was almost invariably followed. It was at his suggestion that the cabinet system was introduced into Russia.
All the useful reforms introduced between 1730 and 1740 are to be attributed to his initiative. He improved the state of trade, lowered taxation, encouraged industry and promoted education, ameliorated the judicature and materially raised the credit of Russia. As foreign minister he was cautious and circumspect, but when war was necessary he prosecuted it vigorously and left nothing to chance. The successful conclusions of the War of the Polish Succession (1733–1735) and of the war with Turkey (1736–39) were entirely due to his diplomacy.
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“The policy of dollar diplomacy is one that appeals alike to idealistic humanitarian sentiments, to dictates of sound policy, and strategy, and to legitimate commercial aims.”
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