菱交會 (Hishikōkai) sounds to me like the name of a club, and I think there was one such club linked to the Mitsubishi zaibatsu in Japan. The character 菱 (hishi), means "diamond shape". It is also the second character of Mitsubishi (三菱). The "h" typically becomes a voiced "b" sound when it appears as part of a two-character compound word.
So, as a wild guess, I would say the recipient might have been affiliated with a Mitsubishi company, and the flag was presented by perhaps someone high up within the company. The mere inclusion of "Hishikōkai" on the flag would make it clear to recipient (and to all the signers) that it had the endorsement of people of high status.