I haven't had a dog who ate paper, but my cat use to eat toilet paper all the time. LOL I can't tell you how many times I came home to find the entire roll of toilet paper off the roll and on the bathroom floor with the end of it chewed off and a very happy satisfied cat sleeping soundly on the lounge.
I don't think the paper will hurt your dog either.
Sounds like he's going well with the 'leave it' command so far though. Keep it up.
Cass.