  We examine the cancellation mechanism between the different contributions to
the electric dipole moment of the neutron in a model with dilaton-dominated
SUSY breaking. We find these accidental cancellations occur at few points in
parameter space. For a wide region of this space we must constrain the phase of
$\mu$ to be of order $10^{-1}$ and have the phases of $A$ and $\mu$ strongly
correlated in order to have small neutron EDM. Moreover, we consider the
indirect CP violation parameter $\epsilon$ in this region where the electric
dipole moment is less than the experimental limit and find that we can generate
$\epsilon$ of order $10^{-6}$.
