First off, that's a pretty cool looking bike...where did you get it?
as for your question.....Yes it can be done but be prepared to modify and make parts.
The biggest issue will be the intake manifold / carb. because you may not have the clearance between the seat tube and the air filter. you can either shorten the intake tube, or buy an off-set intake tube. But i'm pretty sure that a stock 66 c.c. intake tube is too long and the carb won't clear the seat post tube.
You'll have to bend the exhaust because it may end up too close to the ground.(if you run the stock exhaust anyway).
you'll have to shorten your clutch and throttle cables (unless you don't mind a bunch of extra cable strung all over the place.)
you'll have to shorten your engine chain quite a bit.
I had to make a steel spacer plate to go between the rear engine mount and the engine to move the mount closer to the frame. You need to get the engine at the correct angle, and in order for me to get that correct angle, i had to make the spacer plate to move the rear engine mount out slightly. If i remember right, the spacer I made is approx 1/8" thick.
If your engine is it at too much of a forward angle, your carb won't be level, and you're float bowl will run out of gas during full throttle runs.
once you get the engine, and you mock it up in the frame, you'll see what i mean....unless your frame tubes are at different angles than mine.
If you are going to run a 44 tooth rear sprocket, be prepared to only get about 20 mph out of the bike when it's done. The 20" wheels makes the gear ratio lower (less top speed). I'm running a 41 tooth on mine and i'm getting right at about 25-28 mph out of it.
The best option i think is to go with a 36 tooth sprocket to keep the rpms down while crusing at 15-20 mph. a 36 tooth may allow you to get up to 30-32 mph top speeds.
BUT, rider weight plays a roll in this as well.
here's my 20" bike, but if you notice, mine does not have an intake manifold. My carb is mounted right to the cylinder, which gives me lots of clearance.
My engine is a 49 c.c. china 2 stroke, and i'm not sure if they still make them this way (without the intake manifold). Mine has a totally different style carb on it than the normal n.t. carb, because the carb is mounted to 2 studs that screw into the cylinder.
here's a closeup of the carb on my engine...no intake tube, no clearance issues.