In a way that is tactful and sensitive to others' feelings, especially when dealing with delicate situations or disagreements.
From 'diplomatic' (adj.) + '-ally' (adverb suffix). 'Diplomatic' comes from French 'diplomatique', derived from Latin 'diploma' (a folded document), which itself came from Greek 'diplōma' meaning 'folded double'. The word evolved to mean 'skilled in handling delicate negotiations' during the 17th century.
The word 'diploma' literally means 'folded document'—because official papers were folded in half for authentication. So when you're being diplomatic, you're essentially acting with the careful precision of someone handling important official documents!
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