Introducing nonlocal effects such as magnetic dipolar and electric quadrupo
lar ones in the time-dependent perturbation theory, we show that a liquid o
f chiral molecules should exhibit a nonlinear circular dichroism, i.e., a d
ifference in the nonlinear absorption depending on the handedness of the li
ght polarization. General expressions are given and it is shown that such a
n effect should be measurable experimentally. [S0163-1829(99)02734-4].