It is in the garden just left of the treehouse. It is closed when you first arrive. After you are thrown in jail by the samurai, and escape using your magic amulet, the Bonsai Trees store is open. You can borrow a kimono from its owner.
the Imperial Garden
Talk to the old lady in the bonsi hut.
he's in the hut all the way to the left of the island
Go to the very left of the island and he will be the poet in the hut on the water with the banana tree outside :)
The bag of mortar is near the lake at the far left, on the way to the old man's hut.
You have to recieve training from the ninja master is the little hut near to water.
Basho is in the small hut on the water who offers you the haiku. First, for him to be revealed to you, you have to win the Sumo-Wrestler match.
go to the hut in the west of the city and get the mortar, go to the bridge and help the man repair it
Before you can attend the Sumo match, you have to complete three tasks, then trim a bonsai at the bonsai hut.
When the girl drops her scissors on the bridge, pick them up and go right to the Bonsai hut in the gardens. You have to trim a tree for the Yokozuna's assistant before you can go to the arena.
To beat red dragon island, simply beat a red dragon. Don't forget to swallow.
you find it on red dragon island