A passive optical system is proposed which is able to produce an inten
sity squeezed light starting from twin beams having intensity correlat
ed beams at the quantum level. It consists in using a nonlinear medium
presenting a crossed Kerr effect inserted in an optical cavity. The i
ntensity fluctuations of one beam modify the resonance condition of th
e cavity for the other, and therefore its intensity. It is shown that
this system is able to produce a substantial noise reduction.