  We show that dramatic spectral evolution associated with dips occurring near
phase zero in RXTE observations of Cir X-1 is well-fit by variable and at times
heavy absorption (N_H > 10^24 cm^-2) of a bright component, plus an underlying
faint component which is not attenuated by the variable column and whose flux
is ~10% of that of the unabsorbed bright component. A prominent Fe emission
line at ~6.5 keV is evident during the dips. The absolute line flux outside the
dips is similar to that during the dips, indicating that the line is associated
with the faint component. These results are consistent with a model in which
the bright component is radiation received directly from a compact source while
the faint component may be attributed to scattered radiation. Our results are
also generally consistent with those of Brandt et al., who found that a
partial- covering model could explain ASCA spectra of a low-to-high transition
in Cir X-1. The relative brightness of the two components in our model requires
a column density of ~2*10^23 cm^-2 if the faint component is due to Thomson
scattering in material that mostly surrounds the source. We find that
illumination of such a scattering cloud by the observed direct component would
produce an Fe K-alpha fluorescence flux that is in rough agreement with the
flux of the observed emission line. We also conclude that if the scattering
medium is not highly ionized, our line of sight to the compact source does not
pass through it. Finally, we discuss simple pictures of the absorbers
responsible for the dips themselves.
