Final answer:
The Gentlemen's Agreement of 1907 reduced Japanese immigration to the U.S. and improved bilateral relations by informally ensuring that Japan would limit passport issuance for emigration, while the U.S. avoided a formal ban.
Step-by-step explanation:
The Gentlemen's Agreement of 1907 holds historic significance as it was a pivotal diplomatic understanding between the United States and Japan, aimed at resolving mounting tensions over immigration. In this informal yet significant pact, the U.S. refrained from imposing a formal ban on Japanese immigrants, similar to the severe restrictions placed on Chinese migrants. In exchange, Japan agreed to restrict the issuance of passports to Japanese citizens seeking to immigrate to the U.S. Additionally, the San Francisco school board was persuaded by the federal government to only segregate Chinese children, thereby improving the situation for Japanese children in regard to education.
The Agreement successfully reduced Japanese immigration and played a crucial role in preventing further deterioration of U.S.-Japan relations at the time. Nonetheless, it also reflected the broader climate of exclusion and nativism that was prevalent in early 20th-century American society, setting a precedent for future immigration restrictions.