Abstract
Following the pioneering work of Professor Haus, a general quantum theory for bi-directional nonlinear optical pulse propagation problems is developed and applied to study the quantum properties of fibre Bragg grating solitons. Fibre Bragg grating solitons are found to be automatically amplitude squeezed after passing through the grating and the squeezing ratio saturates after a certain grating length. The optimal squeezing ratio occurs when the pulse energy is slightly above the fundamental soliton energy. One can also compress the soliton pulsewidth and enhance the squeezing simultaneously by using an apodized grating, as long as the solitons evolve adiabatically.