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  Some small dogs never do take a shine to small children.  YOu could try what Firstyorkie suggested- carefully and always leave him a place to flee to if he is overwhelmed.  I have had Yorkies that would not take any treat dropped by a child, they were just too wary of the child.  That could be the case with yours. Just be sure the child doesn't get in too close to the dog until and if you start seeing some cooperation from the dog and he is losing that fear of children.
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