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. A gentleman`s agreement, which is rather a point of honour and etiquette, relies on the indulgence of two or more parties for the performance of pronounced or unspoken undertakings. Unlike a binding contract or a legal agreement, there is no legal remedy for violation of a gentlemen`s agreement. 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. President Roosevelt had three goals to resolve the situation: to show Japan that California`s policy did not reflect the ideals of the entire country. , forces San Francisco to remove the segregation policy and 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.  Japan was prepared to restrict 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 that agreed to deny passports to workers entering the United States and recognizing the United States.