The inquiry is examining the events of 30 January 1972
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A former soldier from the Parachute Regiment has told the Bloody Sunday Inquiry he saw a gunman firing a pistol from a block of flats.
Soldier 33 said on Wednesday he saw the man's arm come out from a doorway in Rossville Flats and the shots appeared to have been fired towards soldiers on Rossville Street.
The Saville Inquiry is examining the events of 30 January 1972 when 13 civilians were shot dead by British Army soldiers during a civil rights march in Londonderry. A 14th person died later.
Soldier 33 said he heard a burst of gunfire from a Thompson sub-machine gun as he arrived at the Rossville Flats.
He said he saw the bullets strike the ground.
The inquiry, which usually sits at the Guildhall in Derry, is currently hearing the evidence from military witnesses and others in London because of concerns for their safety.
Lord Saville of Newdigate and the commonwealth judges accompanying him on the Bloody Sunday inquiry began their work nearly four years ago.
They are not expected to report back until 2004.
The Bloody Sunday inquiry was established in 1998 by Prime Minister Tony Blair after a campaign by families of those killed and injured.
They felt that the Widgery Inquiry, held shortly after the shootings, did not find out the truth about what happened on Bloody Sunday.