Le Thanh Kinh, the singer’s lawyer, said yesterday that Glitter had paid $2,000 (£1,150) to each family two weeks ago “for co-operation” in the ensuing legal case. Last week the families of the two girls, aged 11 and 12, wrote to the authorities asking that charges of child rape against Glitter be dropped.

Campaign groups condemned the payments yesterday as shameful, and accused the British Government of hypocrisy in regard to sex offenders living abroad.

Sex with a girl under 13 is statutory rape in Vietnam and carries a possible sentence of death by firing squad. The rape charges against Glitter, 61, were dropped on Monday, but the singer is still thought to be facing charges of child molestation, which he denies.

Vietnamese police said that they had not produced enough evidence to bring the rape charges to court. But Mr Kinh later told reporters: “Gary Glitter told me to do anything to reduce the sentence and said he will pay money to do that. After receiving the money, (the families) informed the investigation bureau that they don’t want to go to court and they want to drop the case.”

Mr Kinh said that one family had asked for £6,000 before accepting a lower offer.

The amount paid to each family is about three times the average annual wage. The singer earns an estimated £100,000 a year in royalties from a catalogue of 1970s glam rock hits.

Nguyen Van Xung, the prosecutor, told the Associated Press agency that the money would have no bearing on whether the case went to trial but that “the court may consider it as one factor to lessen the sentence”.

If found guilty of child molestation, Glitter — whose real name is Paul Francis Gadd — faces up to 12 years in jail. He was arrested at Ho Chi Minh City airport last month.

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