A process of vilification of those who had been unjustifiably shot "sprang into action", counsel told the inquiry.
Mr Seamus Treacy QC, representing a number of victims' families, asserted that, in respect of all the dead and all the wounded, "it was falsely maintained then, and apparently continues to be falsely maintained, that they were all gunmen or bombers".
Mr Treacy dealt with several of the allegations made by military witnesses, in particular that 17year-old Gerald Donaghey was in possession of nail-bombs when he was shot dead.
Counsel said that black lies and propaganda had been used in an attempt to sully and besmirch the name and reputation of this young man, "who was ruthlessly cut down in circumstances which have never been adequately explained and [are] incapable of justification . . ."
Counsel referred to what he described as overwhelming evidence - from civilian, medical, military, forensic and police sources - which demonstrated that the nail-bombs must have been planted on the body of Gerald Donaghey by the security forces after the shooting.
He said that Lord Widgery, who chaired the first tribunal of inquiry, had also attempted to besmirch Gerald Donaghey, an attempt "as transparent as it was tawdry".
In common with other counsel representing various next-of-kin, Mr Treacy said that the families would like someone to come forward now and state that the victims were innocent and apologise for killing them.
Mr Kevin Finnegan QC said that, whatever about the apology of the former British prime minister, Mr John Major, there had never been any confirmation from military sources, the soldiers on the ground or their superior officers of the innocence of the victims and the terrible wrong which had been done to the victims and their families.