In December 1902, an Anglo-German blockade of Venezuela began an incident known as the Venezuelan Crisis. The blockade originated due to money owed by Venezuela to European creditors. Both powers assured the U.S. that they were not interested in conquering Venezuela, and Roosevelt sympathized with the European creditors, but he became suspicious that Germany would demand territorial indemnification from Venezuela. Roosevelt and Hay feared that even an allegedly temporary occupation could lead to a permanent German military presence in the Western Hemisphere. As the blockade began, Roosevelt mobilized the U.S. fleet under the command of Admiral George Dewey. Roosevelt threatened to destroy the German fleet unless the Germans agreed to arbitration regarding the Venezuelan debt, and Germany chose arbitration rather than war. Through American arbitration, Venezuela reached a settlement with Germany and Britain in February 1903.