The increase in Japanese immigration, in part to replace excluded Chinese farm workers, has met with concerted opposition in California. To appease Californians and avoid an open break with Japan`s rising world power, President Theodore Roosevelt negotiated this diplomatic agreement in which the Japanese government took responsibility for sharply reducing Japanese immigration, especially workers, so that Japanese-American children could continue to attend integrated schools on the West Coast. However, family migration could continue, as Japanese-American men with sufficient savings could bring wives through arranged marriages („picture brides“), their parents and minor children. As a result, the Japan-U.S. population was more balanced than other Asian-American communities and continued to grow through natural growth, resulting in increased pressure to end their immigration and further reduce the rights of resident believers. In English contract law, for an agreement to be binding, there must be an intention to establish legal relations; But in business transactions (i.e. agreements that do not exist between family members or friends), there is a legal presumption of an „intention to establish legal relationships“. However, in the 1925 case of Rose & Frank Co v JR Crompton & Bros Ltd, the House of Lords concluded that the phrase „This agreement is not. a formal or legal agreement.
but is only a record of the intention of the parties“ was sufficient to rebut this presumption.  Let me begin by congratulating you on the neat costume and admirable temperament with which you approached the case of the treatment of the Japanese on the coast. I had a conversation with the Japanese ambassador before leaving for Panama; read to him what I had to say in my annual message, which he obviously liked very much; then told him that, in my opinion, the only way to avoid constant friction between the United States and Japan is to limit as much as possible the movement of citizens of each country to the other country to students, travelers, businessmen and others; that since no American workers were trying to get to Japan, which was necessary to prevent any immigration of Japanese workers – i.e. the Coolie class – to the United States; that I sincerely hoped that his government would prevent their kulaks, all their workers, from coming to the United States or Hawaii. He fully agreed with this view and said he had always been against allowing Japanese kulis to go to America or Hawaii. I hope that my message will soothe their feelings so that the government quietly stops the immigration of kulis to our country. Either way, I will do my best to achieve this. What has led to this in some cases are gentlemen`s agreements in which Wall Street financiers like JP Morgan and its „House of Morgan“ have met with the bureau to obtain prior approval for mergers and acquisitions. One such example was the gentlemen`s agreement, in which regulators and the president had to ignore the Sherman Antitrust Act to allow United States Steel Corp. to become the world`s first billion-dollar company.
On the west coast, an intense anti-Japanese mood developed. U.S. President Theodore Roosevelt did not want to upset Japan by passing laws banning Japanese immigration to the United States, as was the case with Chinese immigration. Instead, there was an informal „gentlemen`s agreement“ (1907-8) between the United States and Japan, with Japan ensuring that there was very little or no movement to the United States. The agreements were reached by US Secretary of State Elihu Root and Japanese Foreign Minister Tadasu Hayashi. The agreement prohibited the emigration of Japanese workers to the United States and lifted the segregation order of the San Francisco School Board in California that had humiliated and angered the Japanese. The agreement did not apply to the territory of Hawaii, which was then treated as separate from the United States. The agreements remained in effect until 1924, when Congress banned all immigration from Japan.  Similar anti-Japanese sentiment in Canada simultaneously led to the Hayashi-Lemieux Agreement, also known as the „Gentlemen`s Agreement of 1908,“ with substantially similar clauses and implications…..