  We find that dilaton dominated supersymmetry breaking and spontaneous CP
violation can be achieved in heterotic string models with superpotentials
singular at the fixed points of the modular group. A semi--realistic picture of
CP violation emerges in such models: the CKM phase appears due to a complex VEV
of the T-modulus, while the soft supersymmetric CP phases are absent due to an
axionic--type symmetry.
