well after you finsih the village, you should go to jibubu's house. for me, when i talked to him, he just said that he had heard of a fondation in the east (i think), and if you give it to him, he should give you a clay doll
:^/ This one is a little tricky. I recall that if you approach his home just about sunset you have a good chance. He has to be outside his home (or inside, I forget, now.) -or he won't mention it and you won't be able to offer it to him.