The short answer is yes there will be lateral pressure, but likely reduced. Here are several papers that should help:
[li]Frydman, Sam and Keissar, Israel (1987), "Earth pressure on retaining walls near rock faces," Journal of Geotechnical Engineering, ASCE, Vol. 113, No. 6, June, pp. 586-599.[/li]
[li]Lawson, C. R., and Yee, T. W. (2005), "Reinforced soil retaining walls with constrained reinforced fill zones," Proceedings, Geo-Frontiers 2005, ASCE Geo-Institute Conference.[/li]
[li]Leshchinsky, Dov, and Hu, Yuhui (2003), "Design implications of limited reinforced zone space in SRW's," Proceedings of the 17th GRI Conference[/li]
[li]Kuo-Hsin Yang and J. G. Zornberg, The Coefficient of Earth Pressure on Retaining Walls Placed in Front of a Stable Face with Limited Space; Research paper at University of Texas, sponsored by Texas DOT.[/li]
[li]Kuo-Hsin Yang; Jianye Ching;and Jorge G. Zornberg, "Reliability-Based Design for External Stability of Narrow Mechanically Stabilized Earth Walls: Calibration from Centrifuge Tests", JOURNAL OF GEOTECHNICAL AND GEOENVIRONMENTAL ENGINEERING, ASCE / MARCH 2011 / 239[/li]