In 1918 an exiled Guatemalan rebel leader approached German intelligence with a scheme to topple Guatemala's dictator, invade Belize and allow a U-boat base to be constructed there.

In Veracruz in July, 1918, "General" Valdez carefully composed his secret proposal to the German Minister in Mexico City. Casting all modesty aside, Valdez bestowed upon himself the grandiose title of "Liberal Leader of the Revolutionaries of Central America." He began by falsely asserting that the U. S. "...urges the Governments of Guatemala, Honduras and Nicaragua to send large bodies of troops to the Western Front to oppose the offensive of the Prussian Armies..." Valdez cited his own patriotism, expounded upon the superiority of Teutonic culture, and conjured up fanciful bonds between the German and Guatemalan peoples. The "General" reminded Minister von Eckhardt of Germany's commercial ties to Nicaragua and Costa Rica.