I am so sorry. I know that must be really hard on you right now.
You might read this thread from before:
http://www.yorkietalk.com/forums/bre...questions.html
There is a posting in there from lilfoot about her puppy having a hair lip. Maybe you could PM her?
As far as your vet, that sounds a little cold to me. But I personally do not have any experience with this issue. However, if I didn't like his attitude I would consider a 2nd opinion. Are the other two babies ok? Good luck and let us know what happens.