The 1895 Venezuelan crisis, often referred to as the Venezuela Crisis, was a confrontation between the United Kingdom and the United States over the rights of the disputed territory of British Guiana (now Guyana). The crisis escalated after U.S. President Grover Cleveland issued an ultimatum to the United Kingdom to resolve the dispute through arbitration, which the United Kingdom eventually agreed to. The outcome of the crisis established the principle of arbitration as the preferred method for resolving international disputes, and paved the way for the establishment of the Permanent Court of Arbitration in 1899.