Dynamical supersymmetry breaking in models with a Green-Schwarz mechanism

We consider supersymmetry breaking in theories with gaugino condensation in the presence of an anomalous U(1) symmetry with anomaly cancellation by the Green-Schwarz mechanism. In these models, a Fayet-Iliopoulos D-term can give important contributions to the soft supersymmetry-breaking scalar masses. Most discussions of this possibility have ignored the dilaton field. We argue that this is not appropriate in general, and show that the F-term contributions to the soft breaking terms are comparable to or much larger than the D-term contributions, depending on how the dilaton is stabilized. We discuss phenomenological implications of these results.