I just used yellow yarn to close up the hole. I was a bit puzzled by the original knitters method of working single stitches for the ears etcetera:
It looks as though she has used a separate bit of yarn for each stitch, tying it in a knot at the back. Very laborious! I left them as they were, though I suppose I could have undone them and used duplicate stitch instead. I think it looks alright from the right side. Teddy Bear Sweater, designed by Gill Theokritoff, is now ready for winter.