The church had refused to pay more than $16,000 it owed the diocese because it believes the diocese and the Episcopal Church of the USA shouldn't have supported the 2003 ordination of a gay bishop in New Hampshire and given individual dioceses the right to decide whether to bless same-sex unions.

"If this letter is a contribution to that process of debate, then it is to be welcomed, however robust. If it is an attempt to foreclose that debate, it would seem to serve very little purpose indeed."

END

The primates, headed by the Archbishop of Nigeria, Dr Peter Akinola, suggested that Dr Williams's "personal dissent" from the traditionalist line on homosexuality has prevented him from taking the " necessary steps" to confront the liberal churches of Canada and the US.

The two countries began the crisis that has brought the Church close to schism by authorising same-sex blessings in New Westminster, Canada, and ordaining the openly gay Gene Robinson as Bishop of New Hampshire.

While spokesmen stressed that there were no immediate plans to reorganise dioceses, the proposals were praised as "breathtaking" by the Bishop of Exeter, the Rt Rev Michael Langrish, who opened the debate.

Each of the 44 dioceses has its own costly bureaucracy and pressure is growing for some to be merged or scrapped to encourage the better use of Church resources for mission.