Manfufactured by Modern Toys (MT) of Japan, you may be suprised to learn Modern Toys was only a branding used by the Masudaya Company for its toy line.  Masuday later became an industry leader in airsoft guns.

Regardless of the business arrangements, in the 1950s Modern Toys produced many toys that competed with all the major toy companies of the period.  Here the designers and craftsmen worked together to create a wonderfully playfull puppy who never gets tired of harrassing that poor little mouse.  

This Playful Puppy with Mouse has following actions; 1.  the mouse moves from one end of the hollow log to the other while 2. the puppy's head follows 3. at each end the puppy gives a few "barks" and the mouse retreats and repeats.

There is a very similar version to this toy called Playful Puppy with Caterpillar.  In this version all actions are identical but the mouse is replace with a wiggling caterpillar and the log is removed so the caterpillar is always exposed (and wiggling).  The both share the same litho design, but the colors in used in the litho for each of these version was different to hide the sameness.