diff --git a/resources/languages/resources.properties b/resources/languages/resources.properties
index a41049430..26d7e3ac9 100644
--- a/resources/languages/resources.properties
+++ b/resources/languages/resources.properties
@@ -1531,7 +1531,8 @@ plugin.otr.menu.END_OTR=End private conversation
 plugin.otr.menu.REFRESH_OTR=Refresh private conversation
 plugin.otr.menu.AUTHENTICATE_BUDDY=Authenticate buddy
 plugin.otr.menu.WHATS_THIS=What's this
-plugin.otr.menu.CB_AUTO=Automatically initiate private messaging
+plugin.otr.menu.CB_AUTO=Automatically initiate private messaging with {0}
+plugin.otr.menu.CB_AUTO_ALL=Automatically initiate private messaging with all contacts
 plugin.otr.menu.CB_ENABLE=Enable private messaging
 plugin.otr.menu.CB_REQUIRE=Require private messaging
 plugin.otr.menu.CB_RESET=Reset
diff --git a/src/net/java/sip/communicator/plugin/otr/OtrContactMenu.java b/src/net/java/sip/communicator/plugin/otr/OtrContactMenu.java
index c8b7c9af0..1dd402f9e 100644
--- a/src/net/java/sip/communicator/plugin/otr/OtrContactMenu.java
+++ b/src/net/java/sip/communicator/plugin/otr/OtrContactMenu.java
@@ -13,8 +13,8 @@
 
 import net.java.otr4j.*;
 import net.java.otr4j.session.*;
-import net.java.sip.communicator.service.protocol.*;
 import net.java.sip.communicator.plugin.desktoputil.*;
+import net.java.sip.communicator.service.protocol.*;
 
 /**
  * A special {@link JMenu} that holds the menu items for controlling the
@@ -33,6 +33,8 @@ class OtrContactMenu
 
     private static final String ACTION_COMMAND_CB_AUTO = "CB_AUTO";
 
+    private static final String ACTION_COMMAND_CB_AUTO_ALL = "CB_AUTO_ALL";
+
     private static final String ACTION_COMMAND_CB_ENABLE = "CB_ENABLE";
 
     private static final String ACTION_COMMAND_CB_REQUIRE = "CB_REQUIRE";
@@ -149,10 +151,22 @@ else if (ACTION_COMMAND_CB_AUTO.equals(actionCommand))
             boolean state = ((JCheckBoxMenuItem) e.getSource()).isSelected();
 
             policy.setEnableAlways(state);
+
+            OtrActivator.scOtrEngine.setContactPolicy(contact, policy);
+        }
+
+        else if (ACTION_COMMAND_CB_AUTO_ALL.equals(actionCommand))
+        {
+            OtrPolicy globalPolicy =
+                OtrActivator.scOtrEngine.getGlobalPolicy();
+            boolean state = ((JCheckBoxMenuItem) e.getSource()).isSelected();
+
+            globalPolicy.setEnableAlways(state);
             OtrActivator.configService.setProperty(
                 OtrActivator.AUTO_INIT_OTR_PROP,
                 Boolean.toString(state));
-            OtrActivator.scOtrEngine.setContactPolicy(contact, policy);
+
+            OtrActivator.scOtrEngine.setGlobalPolicy(globalPolicy);
         }
 
         else if (ACTION_COMMAND_CB_REQUIRE.equals(actionCommand))
@@ -235,16 +249,16 @@ private void buildMenu()
         startOtr.setActionCommand(ACTION_COMMAND_START_OTR);
         startOtr.addActionListener(this);
 
+        JMenuItem refreshOtr = new JMenuItem();
+        refreshOtr.setText(OtrActivator.resourceService
+            .getI18NString("plugin.otr.menu.REFRESH_OTR"));
+        refreshOtr.setEnabled(policy.getEnableManual());
+        refreshOtr.setActionCommand(ACTION_COMMAND_REFRESH_OTR);
+        refreshOtr.addActionListener(this);
+
         switch (this.sessionStatus)
         {
         case ENCRYPTED:
-            JMenuItem refreshOtr = new JMenuItem();
-            refreshOtr.setText(OtrActivator.resourceService
-                .getI18NString("plugin.otr.menu.REFRESH_OTR"));
-            refreshOtr.setEnabled(policy.getEnableManual());
-            refreshOtr.setActionCommand(ACTION_COMMAND_REFRESH_OTR);
-            refreshOtr.addActionListener(this);
-
             JMenuItem authBuddy = new JMenuItem();
             authBuddy.setText(OtrActivator.resourceService
                 .getI18NString("plugin.otr.menu.AUTHENTICATE_BUDDY"));
@@ -270,12 +284,12 @@ private void buildMenu()
             if (separateMenu != null)
             {
                 separateMenu.add(endOtr);
-                separateMenu.add(startOtr);
+                separateMenu.add(refreshOtr);
             }
             else
             {
                 parentMenu.add(endOtr);
-                parentMenu.add(startOtr);
+                parentMenu.add(refreshOtr);
             }
             break;
 
@@ -296,21 +310,34 @@ private void buildMenu()
         cbEnable.addActionListener(this);
 
         JCheckBoxMenuItem cbAlways = new JCheckBoxMenuItem();
-        cbAlways.setText(OtrActivator.resourceService
-            .getI18NString("plugin.otr.menu.CB_AUTO"));
+        cbAlways.setText(String.format(
+                OtrActivator.resourceService
+                    .getI18NString(
+                        "plugin.otr.menu.CB_AUTO",
+                        new String[] {contact.getDisplayName()})));
         cbAlways.setEnabled(policy.getEnableManual());
 
+        cbAlways.setSelected(policy.getEnableAlways());
+
+        cbAlways.setActionCommand(ACTION_COMMAND_CB_AUTO);
+        cbAlways.addActionListener(this);
+
+        JCheckBoxMenuItem cbAlwaysAll = new JCheckBoxMenuItem();
+        cbAlwaysAll.setText(OtrActivator.resourceService
+            .getI18NString("plugin.otr.menu.CB_AUTO_ALL"));
+        cbAlwaysAll.setEnabled(policy.getEnableManual());
+
         String autoInitPropValue
             = OtrActivator.configService.getString(
                 OtrActivator.AUTO_INIT_OTR_PROP);
-        boolean isAutoInit = policy.getEnableAlways();
+        boolean isAutoInit =
+            OtrActivator.scOtrEngine.getGlobalPolicy().getEnableAlways();
         if (autoInitPropValue != null)
             isAutoInit = Boolean.parseBoolean(autoInitPropValue);
+        cbAlwaysAll.setSelected(isAutoInit);
 
-        cbAlways.setSelected(isAutoInit);
-
-        cbAlways.setActionCommand(ACTION_COMMAND_CB_AUTO);
-        cbAlways.addActionListener(this);
+        cbAlwaysAll.setActionCommand(ACTION_COMMAND_CB_AUTO_ALL);
+        cbAlwaysAll.addActionListener(this);
 
         JCheckBoxMenuItem cbRequire = new JCheckBoxMenuItem();
         cbRequire.setText(OtrActivator.resourceService
@@ -346,6 +373,7 @@ else if (!isMandatory && defaultOtrPropValue != null)
             separateMenu.addSeparator();
             separateMenu.add(cbEnable);
             separateMenu.add(cbAlways);
+            separateMenu.add(cbAlwaysAll);
             separateMenu.add(cbRequire);
             separateMenu.addSeparator();
             separateMenu.add(cbReset);
@@ -357,6 +385,7 @@ else if (!isMandatory && defaultOtrPropValue != null)
             parentMenu.addSeparator();
             parentMenu.add(cbEnable);
             parentMenu.add(cbAlways);
+            parentMenu.add(cbAlwaysAll);
             parentMenu.add(cbRequire);
             parentMenu.addSeparator();
             parentMenu.add(cbReset);
diff --git a/src/net/java/sip/communicator/plugin/otr/ScOtrEngineImpl.java b/src/net/java/sip/communicator/plugin/otr/ScOtrEngineImpl.java
index 4e929b876..594c8f1aa 100644
--- a/src/net/java/sip/communicator/plugin/otr/ScOtrEngineImpl.java
+++ b/src/net/java/sip/communicator/plugin/otr/ScOtrEngineImpl.java
@@ -597,7 +597,7 @@ public OtrPolicy getContactPolicy(Contact contact)
     public OtrPolicy getGlobalPolicy()
     {
         return new OtrPolicyImpl(this.configurator.getPropertyInt("POLICY",
-            OtrPolicy.OTRL_POLICY_DEFAULT));
+            OtrPolicy.OTRL_POLICY_MANUAL));
     }
 
     /**