An analysis of the neutron EDM and of the electron EDM in minimal N=1 supergravity unification with two CP violating phases is given. For the neutron the analysis includes the complete one loop gluino, chargino, and neutralino exchange diagrams for the electric dipole and the chromoelectric dipole operators, and also the contribution of the purely gluonic dimension six operator. It is shown that there exist significant regions in the six dimensional parameter space of the model where cancellations between the gluino and the chargino exchanges reduce the electric and the chromoelectric contributions, and further cancellations among the electric, the chromoelectric, and the purely gluonic parts lead to a dramatic lowering of the neutron EDM sometimes below the electron EDM value. This phenomenon gives a new mechanism, i.e., that of internal cancellations, for the suppression of the neutron EDM in supersymmetric theories. The cancellation mechanism can significantly reduce the severe fine tuning problem associated with CP violating phases in SUSY and SUGRA unified models.
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