Using homodyning with weak coherent fields and photon counting, we have observed violations of Bell-type inequalities by the generalized Einstein-Podolsky-Rosen state produced in a pulsed nondegenerate optical parametric amplifier, as predicted by Grangier et al. [Phys. Rev. A 38, 3132 (1988)]. The maximum observed visibility of the interference pattern was (89+/-4)%. This interference can be regarded as a manifestation of nonlocality in the sense described by Banaszek and Wodkiewicz [Phys. Rev. A 58, 4345 (1998)]. We have investigated the interference both theoretically and experimentally and have measured the influence of dispersion and phase matching.