Japanese normalization talks halted when North Korea refused to discuss a number of issues with Japan.
When normalization talks broke down, no progress was made on any issue for more than two years.
Mr. Baker said the normalization talks could begin "in the next month or so."
The signing of a Cambodian peace agreement was the initial step required to begin normalization talks.
He stated that he would only attend any further rounds of the normalization talks if a Japanese apology for the incident was forthcoming.
It was eventually agreed that the issue of Li Un Hye would be dealt with separately from the normalization talks.
The first round of normalization talks was held January 30-31, 1991, but quickly broke down over the question of compensation.
The immediate condition to opening normalization talks is the signing of a United Nations-sponsored plan to end the 12-year war in Cambodia.
The two countries have no diplomatic relations, and normalization talks between them have been stalled for months.
In the last week, though, senior Japanese officials have said normalization talks can bear fruit only if the North satisfies international concerns about nuclear weapons.