Austro-Italian ironclad arms race
In the years after Ferdinand Max's departure from Austria, the Imperial Austrian Navy suffered under further political and budgetary constraints. In April 1864, it was proposed that the naval ministry, which the former Archduke had helped to establish, be disbanded. In January 1865, Emperor Franz Joseph I dissolved the ministry and the Imperial Austrian Navy was again placed under the jurisdiction of the Austrian Ministry of War. Under the 1865 budget, just 7,100,000 Florins were allocated towards naval expenses, but once more, none of the funds were designated for warship construction. In 1866, the naval budget grew slightly to 7,800,000 Florins, but for the third consecutive year there would be no funds for additional ironclads, or other warships. Thus, when the Seven Weeks War began in June 1866, the Imperial Austrian Navy would possess only ships which had been constructed during Ferdinand Max's tenure as "Oberkommandant der Marine".
Seven Years' War
The Treaty of Hubertusburg, between Austria, Prussia, and Saxony, was signed on 15 February 1763, at a hunting lodge between Dresden and Leipzig. Negotiations had started there on 31 December 1762. Frederick, who had considered ceding East Prussia to Russia if Peter III helped him secure Saxony, finally insisted on excluding Russia (in fact, no longer a belligerent) from the negotiations. At the same time, he refused to evacuate Saxony until its elector had renounced any claim to reparation. The Austrians wanted at least to retain Glatz, which they had in fact reconquered, but Frederick would not allow it. The treaty simply restored the status quo of 1748, with Silesia and Glatz reverting to Frederick and Saxony to its own elector. The only concession that Prussia made to Austria was to consent to the election of Archduke Joseph as Holy Roman emperor. Saxony emerged from the war weakened and bankrupt; despite losing no territory, Saxony had essentially been a battleground between Prussia and Austria throughout the conflict, with many of its' towns and cities (including the capital of Dresden) damaged by bombardment and looting.