They discussed Gulf security, the Arab-Israeli peace process, political developments in Lebanon and the situation in Iraq.
Dr Rice later held a joint Press conference with Foreign Minister Shaikh Khalid bin Ahmed Al Khalifa, at which she declared the talks a success.
She said discussions had been candid, far-ranging and showed there was a firm foundation for further co-operation.
It was agreed that Iraq should be a regular participant in the '6+2+1' meetings.
"I think that's a very good step forward for the reintegration of Iraq into regional affairs," said Dr Rice.
The media had gathered at the event at 11pm, but were kept waiting until 2pm and Dr Rice and Shaikh Khalid answered only four questions, two of which were from a US media delegation travelling with Dr Rice. Shaikh Khalid said he was confident that progress was being made on attempts to create a Palestinian state through behind-the-scenes discussions.
Dr Rice said the talks bode well for the future. "We had a very good discussion, not only on Iraq but also on Lebanon," she said.
"There was a very strong commitment to a Lebanon that can discharge its affairs in an atmosphere of sovereignty and democracy without outside interference," she said.
"We had a discussion of the Annapolis process (following last December's summit on the Israel-Palestine crisis) and the importance of progress along all of its tracks. We are pushing forward the process with the expectation the parties can reach an agreement by the end of the year."
Dr Rice said there had also been progress in talks about GCC countries having permanent diplomatic representatives in Iraq.
"Iraq is now on the right path and the question is how do we continue to sustain Iraq on that path," she said.
"Part of that is to reintegrate it into the region and reintegration into its Arab identity and that is why it is a very good step to have Iraq as a permanent presence at these meetings."
Shaikh Khalid said it was the first time the countries had agreed such a sweeping declaration of principals as part of efforts to bring peace to the region.
He also revealed Bahrain was close to appointing an envoy in Iraq, following the assurances of Iraqi government officials about security.
"We are now in the process of choosing our ambassador and we are in discussions with our brothers in Iraq about this," he said.
Bahrain's previous Ambassador to Iraq Hassan Al Ansari was shot and badly injured during a kidnapping attempt in Baghdad, in July 2005.
The Manama Declaration reaffirms the countries' condemnation of terrorism, extremism and sectarian violence and their commitment to resolve the important issues such as an agreement between the Palestinian Authority and Israel this year.
It recognises the need for all states to resolve to deter, prevent and counter the pursuit of nuclear weapons and weapons-related technology in contravention of the Nuclear Non Proliferation Treaty and support the responsible and transparent development of civilian nuclear energy.
The declaration also encourages expanded trade and investment, increased employment opportunities and underlined the need for educational and cultural opportunities.
Rice will attend a meeting of Iraq's neighbours in Kuwait today.
Source: Gulf Daily News
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