It is an old cartoon movie. All I can remember is that there is a little boy and he is in love with this little girl that gets kidnapped by this evil crazy looking guy (maybe a sorcerer) who is looking for something (stone or jewel) and either he or the little boy have a magpie bird that steals shiny things and steals this object. In the end the little boy saves her and they find the object in the birds nest, I think. I think that the little girl is Indian. I also remember that they get around in little boats in canals in the street.

The Sword and The Stone?