In 1890, the U.S. government imposed a ban on gentlemen`s agreements in trade and trade relations between nations. President Roosevelt had three objectives to resolve the situation: to show Japan that California`s policy did not reflect the ideals of the entire country to force San Francisco to end the policy of segregation and to find a solution to the problem of Japanese immigration. Victor Metcalf, Minister of Trade and Labour, was sent to investigate the problem and force the repeal of the policy. He did not succeed because local officials wanted Japanese exclusion. Roosevelt tried to put pressure on the school`s management, but it won`t give way. On February 15, 1907, the parties reached a compromise. If Roosevelt could ensure the suspension of Japanese immigration, the school board would allow Japanese-American students to attend public schools. The Japanese government did not want to harm its national pride or suffer humiliations, as the Qing government in China in 1882 by the Chinese exclusion law.
The Japanese government has agreed to refrain from granting passports to workers attempting to enter the United States, unless such workers come to occupy a house formerly acquired to join a relative; The spouse or take active control of a pre-acquired farm.  Despite its informal nature, the breach of a gentlemen`s agreement could have negative effects on trade relations if a party decides not to keep its promise. A gentlemen`s agreement can also be described as a “gentleman`s agreement” and can be completed by a handshake or not. Japan was prepared to limit immigration to the United States, but was seriously injured by San Francisco`s discriminatory law, which specifically targeted its people. President Roosevelt, who wanted to maintain good relations with Japan as a pole opposed to Russian expansion in the Far East, intervened. While the U.S. ambassador reassured the Japanese government, Roosevelt summoned the mayor and the San Francisco school board to the White House in February 1907 and convinced him to end segregation and promised that the federal government itself would address the issue of immigration. On February 24, the gentlemen`s agreement was reached with Japan in the form of a Japanese memo, in which it was agreed to deny passports to workers wishing to enter the United States and to recognize the right of the United States to exclude Japanese immigrants with passports initially issued to other countries. March 13, 1907 followed the formal withdrawal of the San Francisco School Board`s decision.
A final Japanese note, dated February 18, 1908, made the gentlemen`s agreement fully effective. The agreement was replaced by the Immigration Exclusion Act of 1924. Gentlemen`s agreements have often been concluded in international trade and international relations, as well as in most industries. Gentlemen`s agreements were particularly prevalent at the birth of the industrial era and well beyond the first half of the 200th year, as regulations often delayed new business practices. It was found that such agreements were used, among other things, to control prices and limit competition in the steel, iron, water and tobacco industries. Similarly, in 1907 Morgan again collaborated with Roosevelt to create a gentlemen`s agreement that would allow US Steel to acquire its greatest competitor, Tennessee Coal and Iron, in a tacit and unspoken rule that violated the Sherman Act. Gentlemen`s agreements can also be found in trade agreements and international relations. One example is the 1907 Gentlemen`s Agreement, in which the United States and the Japanese Empire addressed immigration from Japan and the mistreatment of Japanese immigrants to the United States.
The agreement, which was never ratified by Congress, saw Japan stop issuing passports to people who wanted to immigrate to America to work.