We study the effect of interparticle interaction U on the spectrum of the
Harper model and show that it leads to a pure-point component arising from the
multifractal spectrum of non interacting problem. Our numerical studies allow
to understand the global structure of the spectrum. Analytical approach
developed permits to understand the origin of localized states in the limit of
strong interaction U and fine spectral structure for small U.Comment: revtex, 4 pages, 5 figure