Thin ultradisperse diamond (UDD) layers deposited from a water suspension are studied by optical and x-ray photoelectron spectroscopy (XPS). The effective band gap determined by the 10(4)-cm(-1) criterion for ozone-cleaned UDD is 3.5 eV. The broad structureless photoluminescence band (380-520 nm) is associated with radiative recombination through a system of continuously distributed energy levels in the band gap of diamond nanoclusters. The optical absorption of the material at 250-1000 nm originates from absorption on the disordered nanocluster surface containing threefold-coordinated carbon. The surface of UDD clusters subjected to acid cleaning contains nitrogen-oxygen complexes adsorbed in the form of NO3- nitrate ions. Annealing in a hydrogen atmosphere results in desorption of the nitrate ions from the cluster surface. The evolution of the oxygen (O1s) and nitrogen (N1s) lines in the XPS spectra under annealing of a UDD layer is studied comprehensively. (C) 2001 MAIK "Nauka/Interperiodica".