We have theoretically analysed the effect of polarization of the initial st
ate on squeezed-state generation. The analysis has been applied to a sample
of GaAs irradiated by a KCl:Na laser tunable over the range 1.62-1.91 mu m
. The ellipticity of error ellipse and time and power dependence of quadrat
ure variance suggest that the circular polarization state is most suitable
for squeezed-state generation. We have also extended our analysis to a homo
dyne detection technique and have studied the power dependence of signal-to
-noise ratio.