I'd explain the problem to the neighbours and ask if they mind you giving the dog a raw bone to see if it calms the dog; this would alert the neighbours to your problem in a non-confrontational manner and may facilitate some other solution should the bone fail to have the desired effect.
As a follow up to the expected failure of the 'give the dog a bone' plan you could offer to buy one of those anti-bark collars that squirts citronella.
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