  We propose a Su-Schrieffer-Heeger type electron-phonon model for C_{60} with
O defects and solve by the adiabatic approximation. Two new properties are
obtained. (1) The dimerization becomes weaker around the oxygen. Two localized
states appear deep in the gap. Optical transition between them is allowed. This
accords with the recent optical absorption data. (2) Oxygens are predicted to
cluster on the surface of $\soc$. PACS numbers: 3640, 7155, 6165, 3120P
