to reduce the risk of flooding, a new aqueduct constructed to bring fresh water into the city, and many new bridges, schools, hospitals, churches and a new university built. Foreign policy What was supposed to be a temporary emergency measure was to last for half a century. Austria succeeded in staying neutral during the Franco Prussian War of 1870–1 despite those who saw an opportunity for revenge on Prussia for the events of 1866. However Austria's allies among the South German States were now allied with Prussia, and it was unlikely that Austria's military capacity had significantly improved in the meantime. Any residual doubts were rapidly dispelled by the speed of the Prussian advance and the subsequent overthrow of the Second Empire. In November 1871 Austria made a radical change in foreign policy. Ferdinand Beust, the First Prime Minister (to 1867), Chancellor and Foreign Minister (1866–1871) of the Dual Monarchy, was dismissed. Beust was an advocate of revanche against Prussia, but was succeeded by the Hungarian Prime Minister, the liberal Gyula Andrássy as Foreign Minister (1871–1879), although both opposed the federalist policies of Prime Minister Karl Hohenwart (1871) while Prince Adolf of Auersperg became the new Prime Minister (1871–1879). Andrássy 's appointment caused concern among the conservative Court Party (Kamarilla), but he worked hard to restore relationships between Berlin and Vienna, culminating in the Dual Alliance (Zweibund) of 1879. In 1878, Austria-Hungary occupied Bosnia and Herzegovina, which had been cut off from the rest of the Ottoman Empire by the creation of new states in the Balkans following the Russo-Turkish War of 1877–78 and the resulting Congress of Berlin (June–July 1878). The territory was ceded to Austria-Hungary, and Andrássy prepared to occupy it. This led to a further deterioration of relations with Russia and was to lead to tragic consequences in the next century. Austrian troops encountered stiff resistance and suffered significant casualties. The occupation created controversy both within and without the empire and led to Andrássy's resignation in 1879. This territory was finally annexed in 1908 and put under joint rule by the governments of both Austria and Hungary. The departure of the Liberal Government and of Andrássy from the Foreign Office (k. u. k. Ministerium des Äußern) marked a sharp shift in Austria-Hungary's foreign policy, particularly in relation to Russia, Count Gustav Kálnoky (1881–1895) Andrássy's Conservative replacement pursuing a new rapprochement. Economy The second half of the 19th