We present a theoretical study of the dispersion of Frenkel-type excit
ons in the low-temperature Pa(3) over bar phase of solid C-60. Exciton
propagation is accomplished by an exchangelike two-step process, wher
e an electron-hole pair on a given C-60 molecule is split by the inter
molecular kinetic energy and recombines on a neighboring molecule. We
apply our results to the theoretical calculation of the nonlinear opti
cal susceptibility for second-harmonic generation, for which we find r
easonable agreement with experiment.