CP violation and dilaton stabilization in heterotic string models

We study the possibility of spontaneous CP violation in string models with the dilaton field stabilized at a phenomenologically acceptable value. We consider three mechanisms to stabilize the dilaton: multiple gaugino condensates, a nonperturbative Kahler potential, and a superpotential based on S-duality, and analyze consequent CP phases in the soft SUSY breaking terms. Due to non-universality forced upon the theory by requiring a non-trivial CKM phase, the EDM problem becomes more severe. Even if there are no complex phases in the VEVs of the SUSY breaking fields, the electric dipole moments are overproduced by orders of magnitude. We also address the question of modular invariance of the physical CP phases.