We present a microscopic model to understand the magnetoelectric and s
econd-harmonic spectra of Cr2O3 and the interference effect between th
e magnetic (chi(m)) and electric (chi(e)) second-order optical polariz
ations. The spin-orbit interaction and the crystalline fields of corre
ct symmetry around the Cr3+ ion, i.e., the axial and twisted crystalli
ne field of C-3 symmetry, are treated as perturbation on the trigonal
states of the d(3) system of Cr3+. By these treatments we attempt to d
escribe the observed phenomena associated with the transitions between
(4)A(2g) and T-4(2g) states in Cr2O3. It is possible to reproduce the
observed spectra of the polarization rotation and ellipticity, and th
e second-harmonic generation spectra described by the nonlinear suscep
tibilities chi(m) and chi(e) The estimated theoretical magnitudes of t
hese quantities are in reasonable agreement with the observed magnitud
es. [S0163-1829(98)07415-3].