The possibility of spontaneous breaking of CP symmetry by the expectat
ion values of orbifold moduli is investigated with particular referenc
e to CP-violating phases in soft supersymmetry-breaking terms. The eff
ect of different mechanisms for stabilizing the dilation and the form
of the non-perturbative superpotential on the existence and size of th
ese phases is studied. Models with modular symmetries which are subgro
ups of PSL(2, Z), as well as the single overall modulus T case with th
e full PSL(2, Z) modular symmetry, are discussed. Non-perturbative sup
erpotentials involving the absolute modular invariant j(T), such as ma
y arise from F-theory compactifications, are considered. (C) 1998 Else
vier Science B.V.