Canada's Anglican bishops have appealed to Prime Minister Jean Chrétien to intervene in stalled negotiations aimed at compensating indigenous Canadians who were harmed in residential schools. Although owned by the government, some of the schools were operated with help from church organizations, including the Anglican Church of Canada.

Before the litigation is over, more than 100,000 surviving students are expected to bring legal action against the federal government and several church organizations. The victims allege they were abused in a variety of ways, including sexually and culturally, when they were taken from their biological families and placed in schools by the Canadian government. The assimilation policy operated across Canada from the mid-19th century until the 1990s.

To date the government has ignored recommendations from aboriginal, church and legal groups that it should provide a means of settling these claims outside the courts.

"Those who were abused still wait for justice and the litigation is rapidly draining [our] resources," the letter states. "We assure you of our ongoing commitment to our ministry of healing among the indigenous peoples of Canada. We will continue this work as long as we are able, but it is now in jeopardy."

Recently the General Synod told the government that church assets will be exhausted before the end of the year. Eight Canadian dioceses are bearing heavy costs of litigation and some will be facing financial crises soon. The Diocese of Cariboo already has taken steps that may lead to its dissolution by October.

Other members of the Anglican Communion are or soon will be forced to share in the cost of the crisis, according to the Rev. Canon John Peterson, secretary general.

"You may not think that $5,000 Canadian is that much out of a budget," Canon Peterson told the Anglican Journal of Canada, "but when an African church gets a letter from the Canadian national office saying their allotment has been cut or dropped because of the residential schools situation, that is felt.

"Others wonder how long can an event from so long ago be holding the church hostage today? And that's understandable," he added.

Anglican News Service of Canada contributed to this report.