The State Department on Friday denounced as "unjustified" Iraqi's expulsion of an American diplomat and retaliated by throwing out an Iraqi diplomat stationed here. Referring to the American diplomat, identified in Baghdad as Haywood Rankin, head of the U.S. Embassy's political section, State Department spokesman Charles E. Redman said, "None of his activities have been incompatible in any way with his diplomatic status." Assistant Secretary of State Richard W. Murphy informed the Iraqi ambassador, Abdul-Amir Al-Anbari, that an Iraqi diplomat in Washington had been declared persona non grata, Redman said. Meanwhile, Britain said on Friday it expelled three members of the Iraqi embassy in London last month for "activities incompatible with their status," a diplomatic euphemism for spying. Baghdad retaliated Nov. 1 by ordering home three British diplomats who have all returned to London since, the Foreign Office said.