Who is winning the Iraqi intelligence war?

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Who is winning the Iraqi intelligence war? (4:28)

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BAGHDAD, Iraq (CNN) -- The top U.S. envoy to Baghdad Saturday called on Iraq's neighbors to do more to halt bloodshed in the violence-ravaged country at ground breaking peace talks that united estranged American and Iranian diplomats for the first time in decades.

Zalmay Khalilzad told delegates -- including Arab nations and U.N. Security Council members -- the fate of their own nations depended on the stabilization of Iraq, echoing earlier comments by Iraqi Prime Minister Nuri al-Maliki, who warned carnage could spill across the region.

Underlining the problems still facing the country, a suicide car bomb exploded Saturday near the Baghdad militant Shiite stronghold of Sadr City, killing 20 and wounding at least 45. Two mortars also struck the Green Zone, Baghdad's fortified diplomatic compound, close to the Foreign Ministry venue of the peace talks. At the one-day conference, held to lay the groundwork for a top level meeting slated for April, Khalilzad said Iraq deserves support from its friends and neighbors to resolve its problems."No country represented at the table would benefit from a disintegrated Iraq; indeed, all would suffer badly," Khalilzad said.

Iraqi Prime Minister Nuri al-Maliki warned against the use of his nation as a proxy arena for settling global disputes. "We do not want Iraq and its lands, its streets and its cities to be the battleground to settle regional or international disputes," al-Maliki said. "We call for peaceful dialogue to settle disputes, including international, regional and inter-regional issues," al-Maliki said. The prime minister added that his government "will not interfere in the affairs of other countries nor will it use its land as a base to attack others, at the same time we are waiting for others to adapt the same position." He challenged all attending to adopt a "strong and clear stance against terrorism in Iraq" and cooperate in efforts to "stamp out the forces of terror."

Saturday's one-day conference was also seen as an ice breaker for the United States and Iran, who may use the event to bridge nearly 28-years of diplomatic estrangement.

The chief U.S. delegate, David Satterfield, said Thursday that "we are not going to turn and walk away" if approached by Iran or Syria to discuss Iraq, AP reported.

But Satterfield, the top State Department adviser on Iraq, added that the United States plans to use the meeting to reinforce its accusations against both nations. They include U.S. claims that Syria allows foreign jihadists and Sunni insurgents to cross its border into Iraq, and that weapon shipments from Iran reach Shiite militias. Both nations deny the allegations, AP said. Iran's chief envoy, Abbas Araghchi has said Iran "hopes to take more steps" to support the U.S.-backed government in Iraq -- which is led by a Shiite prime minister with close ties to Shiite heavyweight Iran.

Iran, however, has strongly denounced the U.S. military presence. The complaints grew more pointed in December after American forces detained two Iranian security agents at the compound of a major Shiite political bloc in Baghdad.