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the size of a dog has nothing to do with its prey drive, personality, or genetics. shepherds were bred to herd and are much less likely to chase and kill small game or birds than lets say a jack russell terrier who despite its size was bred to hunt and can be impossible to safely house with small pets or birds.
for your chihuahua i would suggest positive reinforcement for ignoring the chickens. use a long line and practice recall inside the house, reward when she comes, reel her in if she doesn't and use a command and try again. when you have mastered this, use the line and practice outdoors away from the chickens. when thats successful, use the line and do it with the chickens in site. REWARD REWARD REWARD. next keep her on the line and practice with the chickens free ranging. once she has worked up your trust allow supervised interactions. (forgo dinner and train the dog on an empty stomach, hungry dogs work harder than full dogs...in fact, you can get to the point where you only feed her when teh chickens are out and about and your dog will learn (maybe) that chickens = reward and treats!).
if positive reinforcement doesn't work. leash the dog and give a short quick and forceful snap of the leash the second the dog exhibits prey drive towards the chickens. reward for calm behavior.
its possible none of this will work and you might not be able to allow the dog out lose when the chickens are lose (i have 3 terriers that can't be out when my chickens are free ranging).
i wouldn't suggest letting a chicken attack a 3lb dog unless you are prepared for potential damage. using the chickens to teach the lesson might work, but on an animal that size they could injure your pet.
With all due respect, I disagree. I've owned both, GSDs and chewies. If my GSDs want after something, no amount of treat is going to change their mind. I have to use voice command. If you can't control a chewie, you leash it and pick it up. Plain and simple. Control it by sheer force (force aka restraint) if no other way. Even my dear friends morbidly obese 45 lbs. JRT I can control by force if need be. Not exactly something you can do with a 100 lb., not yet grown GSD. They better listen to voice command or you could have a tragedy on your hands real quick. Point being, train the dog or keep the dog and the chickens seperate at all times. I have a cat that CANNOT be trusted around chickens. She's now a housecat. She hates it. I hate it. A housecat she shall remain.
As for the turning the chickens loose on the dog, we were all just joking. We tend to have that type of sense of humor around here and I think Princess understood that.
I'll still lend her my 13 lb. roo if she wants.
Give me a few months, I'll have full grown Toms to lend