At that time, there were 93 Japanese students in 23 primary schools. For decades, politics separated Japanese schools, but they were not imposed until there was room and white parents complained. The Japanese and Korean exclusion leagues have appeared before the board several times to complain. The school board rejected his applications because it is not taxable to create new facilities for only 93 students. After the 1906 fire, the principal sent the 93 Japanese students to the Chinese primary school and named them “The Oriental Public School for Chinese, Japanese and Koreans.” Traffic was limited after the earthquake, and many students were unable to attend the Eastern Public School.  In English contract law, an agreement, in order to be binding, must be aimed at establishing legal relations; but in commercial transactions (i.e. agreements that do not exist between family members or friends), there is a legal presumption of “intent to establish legal relations”. In the 1925 case of Rose and Frank Co. v. JR Crompton – Bros Ltd., however, the House of Lords found that the phrase ” “This regulation is not … a formal or legal agreement … is only a record of the parties` intention “was sufficient to rebut this presumption.  Restrictions on Japanese immigration were deemed necessary following an influx of Japanese workers into British Columbia and a wave of anti-Asians in the province.
More than 8,000 Japanese immigrants arrived in Canada in the first ten months of 1907, a dramatic increase over previous years.  Reports that the Grand Trunk Pacific Railway planned to import thousands more Japanese workers to work on the western part of the railway fuelled the anti-Asian atmosphere.  Hostility towards the Asian population turned violent at an Asian Exclusion League rally in Vancouver in 1907. The crowd turned into an uncontrollable mob that targeted the city`s Chinese and Japanese residents and destroyed their personal belongings.  Many Americans argued that the separation of schools was contrary to the 1894 treaty, which did not explicitly address education, but indicated that the Japanese would obtain equal rights in America. According to the U.S. Supreme Court review decisions (Plessy v. Ferguson, 1896), a state did not violate the equality clause of the U.S. Constitution by imposing racial segregation as long as the various institutions are essentially equal. Tokyo newspapers have denounced segregation as an insult to Japanese pride and honour.
The Japanese government wanted to protect its reputation as a world power. Government officials became aware of the crisis and intervention was needed to maintain diplomatic peace.  A gentleman`s agreement, defined at the beginning of the 20th century as “an agreement between gentlemen who looks at price control,” was described by one source as the most flexible form of a “pool.”  Such agreements have been declared in all industrial sectors and are numerous in the steel and steel industry.  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 eliminate the policy of segregation and to find a solution to the problem of Japanese immigration.