A theoretical approach is presented to calculate the natural circular dichr
oism recently discovered in the x-ray range (XNCD). XNCD is shown to be due
to an interference of electric dipole and quadrupole transitions. The basi
c formula represents XNCD as an odd second-rank tensor. The crystal symmetr
ies compatible with XNCD are determined. Sum rules are derived that relate
XNCD to the mixing of odd and even orbitals on the absorbing site in the gr
ound state. A multiple-scattering theory of XNCD is presented. The results
are analyzed to show that XNCD is sensitive to the relative orientation of
the cluster shells. A scattering path analysis is carried out to identify t
he paths responsible for the signal.