Two youths who may have been carrying nail bombs were ordered from Glenfada Park five minutes before paratroopers entered the area, a witness told the inquiry yesterday.
Mr Michael Quinn, who was shot in the face on Bloody Sunday, described seeing two youths peering out from Glenfada Park into Rossville Street, where soldiers had taken up position.
Mr Quinn, who was 17 at the time, said one of the youths had an object in his left pocket which was something like a Coke tin with grey tape and a piece of material coming out of the top.
The witness said he then saw a man coming from another corner of Glenfada Park towards the two boys and saying words to the effect of "Put those away, you will only get people killed".
He said the youths did as they were told and left Glenfada Park.
Shortly afterwards, a young man standing near him was shot and collapsed. This man was not doing anything, he said.
Mr Quinn said he "made a break" for the exit in the southwest corner of Glenfada Park, but as he ran he "felt a very hard thump in the face". He subsequently discovered a bullet had struck him on the shoulder and then passed into the right side of his face, exiting through the left side of his nose.
The inquiry continues today.