Which conclusion about Japanese immigration can be drawn from the graph? It rose after 1906 because of the Chinese Exclusion Act. It was unaffected by attempts to limit Asian immigration. It declined after Angel Island was ordered closed in 1907. It declined after 1907 due to the Gentlemen's Agreement.
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Best guess would probably be that it declined after 1907 due to the Gentleman's Agreement. It was an odd arrangement between Japan and the US, an informal agreement that basically said that Japan would stop issuing passports for Japanese citizens to travel to the US to work, but at the same time, the US wouldn't restrict Japanese who were already there from working (or segregate them into separate schools). This was due to quite a bit of rabid anti-Japanese sentiment that was building up and Japan was concerned that the US might do to them what they did to Chinese immigration by strangling it with legislation.