I was surprised when I learned this was filmed in Japan

I was surprised too. As the version I watched had Dudley Moore as the narrator, and I saw it when I was like five years old, so I had no idea.

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It was probably filmed in Hokkaido.

It was indeed filmed there, and in fact I recently watched a documentary on Hokkaido, namely the natural landscape and topography and wildlife there, and instantly thought of Milo and Otis.

Hokkaido does seem breathtakingly beautiful.

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