The nearest neighbour level spacing distribution and the Delta(3) stat
istic of level fluctuations associated with very high spin states (I g
reater than or similar to 30) in rare-earth deformed nuclei are analys
ed by means of a cranked shell model, The many particle-many hole conf
igurations created in the rotating Nilsson potential are mixed by the
surface-delta two-body residual interaction, The levels in the near-yr
ast region show a Poisson-like level spacing distribution. As the intr
insic excitation energy U increases, the level statistics shows a grad
ual transition from order to chaos, reaching at U greater than or simi
lar to 2 MeV the Wigner distribution typical of the Gaussian orthogona
l ensemble of random matrices, This transition is caused by the residu
al two-body interaction, On the other hand, the level spacings between
the yrast and the first excited state show a peculiar behaviour, disp
laying a Wigner-like distribution instead of the Poisson-like distribu
tion seen for the other near-yrast rotational states, The lowest spaci
ngs reflect the properties of the single-particle orbits in the mean-f
ield, and are only weakly affected by the residual two-body interactio
n. (C) 1997 Elsevier Science B.V.