Hi Chilover,
Please do not use pinetar soap or pinesol products on your dog. These products can be toxic to a dog and one as small as yours would be more likely to have a toxic response.
Amitraz Pour On (Mitaban Rx) dip done every other week for 6 to 8 applications or until 2 consecutive skin scrapings is one treatment. You can read about the precautions, usage and dosage information below. It does state that diabetics may be affected by the dip. In addition, if your dog has problems maintaining his glucose levels this might not be the right treatment choice either.
http://www.petplace.com/drug-library/amitraz-mitaban-preventic/page1.aspx
Ivermectin is also freqently used to treat mange but should not be used on herding breeds. Some herding breeds are hypersensative to the drug and it can kill them. You can read about precautions, usage and dosing information here.
http://www.petplace.com/drug-library/ivermectin-ivomec-heartgard/page1.aspx
And about toxicity here:
http://www.petplace.com/dogs/ivermectin-toxicity/page1.aspx
I've had some success with topical Happy Jack Mange treatment, but I will warn you that it smells like sulfur and stains everything it touches. It is not a good idea to have your dog in the house with this on it. However, I did see hair regrowth in a week with this product. I was also using ivermectin as well.
With a dog this size, I would recommend that bloodwork be done to be sure the organs are functioning properly to help avoid any toxic responses to medication. Your vet may also want to wait a little longer before treatment as well. I hope this information is helpful to you.
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Thanks,
Jane
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