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This is a slightly modified excerpt from a recent brief essay I have written outlining this position:
As you are aware the beginning of Turkish denial of the Armenian Genocide was in the creation of false and misleading accounts of Armenian sedition in the Spring of 1915 creating the suposed rational for "deportations" based on suposed military necesity. This rational became a cover for the severe actions taken against the Armenians - first of the East, expanding to Empire wide, where the CUP pursued a calculated plan of decimation of the Armenian nation within the Empire for the purpose of complete disenfranchisement of the Armenian people and the total elimination of Armenians from Anatolia. (To eliminate once and for all the so called "Armenian Question" which had been a thorn in the Ottoman's side for several generations). Perhaps there is some legitimate debate whether this policy (of Genocide) was preconceived at its initiation - however there can be no disputing that the CUP was fully cognizant of the possibility of doing this and had discussed such a possibility as early as 1910/11 (in regards to all non-Muslim elements of the Empire). What cannot be disputed (and is not disputed among serious scholars) is that the CUP "deporation" plan and enactment quickly became a means to do just that - eliminate the Armenians from Anatolia completely. Obviously the CUP appreciated the ability to act with impunity under the cover of war - and some scholars take the position that entry into the war itself was done with this [Pan-Turkic] goal in mind - that the very fact of the war facilitated this attempt and that Enver's immediate attempts at the Caucuses (which included not only the taking of territory but the attempt to ethnicaly cleans the region of non-Muslims and unite Muslim elements Eastward under a common banner). Again, the Armenians were unfortunate to be in the way - and this - much more then any actual sedition or national aspirations on the part of the Armenians sealed their doom. Of course the policy and practice of denial was clearly premeditated in the manner in which secret orders were given directly to Special organization units (even using ciphers that were unreadable by the Ottoman military) and through the use of CUP party aparatus to force (sometimes reluctant) Ottoman regional authorities to coporate in the brutal/barbaric undertakings that were clearly appreciated for what they were - a slaughter of innocents.
The denial began with the publishing and circulation (internal and external) of governmental edicts that both rationalized the "deportation" based on spurious basis and which falsely mandated that the Armenians (and their properties) be cared for with the (knowingly false) assumption that after hostilities were ended they would be allowed to return home and in the meantime would be properly cared for. Of course no intent or provisions were ever made for any of these things as has been clearly demonstrated by scholars and observed and commented on by countless sources (including Ottoman Allies and nuetral parties). Meanwhile the CUP and Ottoman government maintained the facade that they were combatting rebelion and sedition - when basically none (to any significant and/or accuratly reported degree) was occuring and that which was was clearly defensive on the part of Armenian communities who were being brutalized by Special organization "Chettes" and Kurdish bandit cheiftans sponsored and encouraged by them. Again, throughout this period the CUP took great effort to hide the aspects of this process which amounted to slughter of innocnets and publically deny it all the while congratulating themselves and boasting about their accomplishments in wiping out the Armenians (which also occured in various memoirs of CUP and Ottoman officials published after the war and in various other admissions - including those submitted as evidence in the Post War Military Tribunals. Of course, after the war the nationalists - consisting to a great degree of former CUP operatives - denied that any such thing had ever occured and began the myth of interniacine conflisct and civil war - which is a complete and utter distortion of what actually occured. The Armenian situation was folded into the Turkish nation building mythology which postulated an embattered Turkish majority in Anatolia besieged by European Imperilaist forces with designs on Ottoman/Turkish territory where the Armenians were (and still are) presented as unwitting pawns who were manipulated into turning on their Turkish masters - placing the blame - the onus of action and initiation of the hostility between the Turks and Armenians upon the Armenians - when again the reality of this is essentially the complete and utter opposite - Armenians were victims of Turkish nationalism and racism and paranoia and they commited no significant actions (in the period beginning with the onset of the CUP rise to power) that in any way could rationally be used to justify actions taken against them. (Armenian actions [in the preceeding period] that enraged the Turks amounted to petitions for reforms for basic rights [delivered to Western powers who attemptred to pressure the Sultan to oblige when he ignored the direct petitions] and this upset the balance and expectation of Turkish/Muslim superiority in the relationship between peoples - there is much literature supporting this). However these false contentions on the part of the Turks - that Ottoman Armenians (as a group) were in league with Ottoman enemies, were killing Turks in support of such and had realistic aspirations for an Armenian state that they were actually acting upon) was the key to Turkish rationalization and denial (by way of false rational for and depiction of the actions taken) at the time - just as it is now - but there exists no evidence whatsoever to support this contention (outside of the CUP unsupported propoganda and heresay to this effect). Thus the seeds of denial were sown concurent to the actual planning for and carrying out of the Genocide itself.
It has only been through a serious of fortunate Geostrategic and political circumstance that have allowed the Turks to escape unified condemnation and acceptance of the truth of these crimes - again beginning with the political manuverings among the various Western Powers even before the war ended (where national greed and ambition drove the peace and post-war results all to the detriment of the Armenians and human rights considerations). Additionally the post war situation with the discovery of oil and opening up of former Ottoman territories to western commercial interests (and competion) and the rise of the Kemalists and their proven strength all facotred into the ease at which the atrocities - which had been headline news throughout the war - were swept under the rug - along with all accountability for the destruction of a people and culture that had essentially ceased to exist. And what followed was the strategic position of Turkey vis a vis the Soviet menace and again all incentive to push the Turks on this issue fell away. And now of course Turkey is seen as a bulwark against Islamic extremism and as and ally to Israel in the region...meanwhile the Turksih nation building myth has created a perspective on these times where most Turks cannot even concieve that they were not the victims who triumphed over all adversity - with the Armenian just having been another tool of their downfall that they overcame. To accept the truth of the history was/is to shake the very foundations of the Turkish nation - conceptually and in reality (as so much was based upon seizing the economic engines from the Greeks and Armenians...another hidden motivation for the actions against them in the first place - and this entire issue can be much more elaborated on as it is a central component of the whys of the Genocide - as much or perhaps even more then any true fear of Armenian national aspirations). Thus we can appreciate why denial of the genocide is foreign and domestic policy #1 for the Turks and has been since the beginning. Most have no real appreciation for the interwoven dynamics that have left us in our current state of affairs with official Turkish Government denial (now and from the time of the Genocide) and of the fanatical insistence from most Turks that no such thing ever occured.
As you are aware the beginning of Turkish denial of the Armenian Genocide was in the creation of false and misleading accounts of Armenian sedition in the Spring of 1915 creating the suposed rational for "deportations" based on suposed military necesity. This rational became a cover for the severe actions taken against the Armenians - first of the East, expanding to Empire wide, where the CUP pursued a calculated plan of decimation of the Armenian nation within the Empire for the purpose of complete disenfranchisement of the Armenian people and the total elimination of Armenians from Anatolia. (To eliminate once and for all the so called "Armenian Question" which had been a thorn in the Ottoman's side for several generations). Perhaps there is some legitimate debate whether this policy (of Genocide) was preconceived at its initiation - however there can be no disputing that the CUP was fully cognizant of the possibility of doing this and had discussed such a possibility as early as 1910/11 (in regards to all non-Muslim elements of the Empire). What cannot be disputed (and is not disputed among serious scholars) is that the CUP "deporation" plan and enactment quickly became a means to do just that - eliminate the Armenians from Anatolia completely. Obviously the CUP appreciated the ability to act with impunity under the cover of war - and some scholars take the position that entry into the war itself was done with this [Pan-Turkic] goal in mind - that the very fact of the war facilitated this attempt and that Enver's immediate attempts at the Caucuses (which included not only the taking of territory but the attempt to ethnicaly cleans the region of non-Muslims and unite Muslim elements Eastward under a common banner). Again, the Armenians were unfortunate to be in the way - and this - much more then any actual sedition or national aspirations on the part of the Armenians sealed their doom. Of course the policy and practice of denial was clearly premeditated in the manner in which secret orders were given directly to Special organization units (even using ciphers that were unreadable by the Ottoman military) and through the use of CUP party aparatus to force (sometimes reluctant) Ottoman regional authorities to coporate in the brutal/barbaric undertakings that were clearly appreciated for what they were - a slaughter of innocents.
The denial began with the publishing and circulation (internal and external) of governmental edicts that both rationalized the "deportation" based on spurious basis and which falsely mandated that the Armenians (and their properties) be cared for with the (knowingly false) assumption that after hostilities were ended they would be allowed to return home and in the meantime would be properly cared for. Of course no intent or provisions were ever made for any of these things as has been clearly demonstrated by scholars and observed and commented on by countless sources (including Ottoman Allies and nuetral parties). Meanwhile the CUP and Ottoman government maintained the facade that they were combatting rebelion and sedition - when basically none (to any significant and/or accuratly reported degree) was occuring and that which was was clearly defensive on the part of Armenian communities who were being brutalized by Special organization "Chettes" and Kurdish bandit cheiftans sponsored and encouraged by them. Again, throughout this period the CUP took great effort to hide the aspects of this process which amounted to slughter of innocnets and publically deny it all the while congratulating themselves and boasting about their accomplishments in wiping out the Armenians (which also occured in various memoirs of CUP and Ottoman officials published after the war and in various other admissions - including those submitted as evidence in the Post War Military Tribunals. Of course, after the war the nationalists - consisting to a great degree of former CUP operatives - denied that any such thing had ever occured and began the myth of interniacine conflisct and civil war - which is a complete and utter distortion of what actually occured. The Armenian situation was folded into the Turkish nation building mythology which postulated an embattered Turkish majority in Anatolia besieged by European Imperilaist forces with designs on Ottoman/Turkish territory where the Armenians were (and still are) presented as unwitting pawns who were manipulated into turning on their Turkish masters - placing the blame - the onus of action and initiation of the hostility between the Turks and Armenians upon the Armenians - when again the reality of this is essentially the complete and utter opposite - Armenians were victims of Turkish nationalism and racism and paranoia and they commited no significant actions (in the period beginning with the onset of the CUP rise to power) that in any way could rationally be used to justify actions taken against them. (Armenian actions [in the preceeding period] that enraged the Turks amounted to petitions for reforms for basic rights [delivered to Western powers who attemptred to pressure the Sultan to oblige when he ignored the direct petitions] and this upset the balance and expectation of Turkish/Muslim superiority in the relationship between peoples - there is much literature supporting this). However these false contentions on the part of the Turks - that Ottoman Armenians (as a group) were in league with Ottoman enemies, were killing Turks in support of such and had realistic aspirations for an Armenian state that they were actually acting upon) was the key to Turkish rationalization and denial (by way of false rational for and depiction of the actions taken) at the time - just as it is now - but there exists no evidence whatsoever to support this contention (outside of the CUP unsupported propoganda and heresay to this effect). Thus the seeds of denial were sown concurent to the actual planning for and carrying out of the Genocide itself.
It has only been through a serious of fortunate Geostrategic and political circumstance that have allowed the Turks to escape unified condemnation and acceptance of the truth of these crimes - again beginning with the political manuverings among the various Western Powers even before the war ended (where national greed and ambition drove the peace and post-war results all to the detriment of the Armenians and human rights considerations). Additionally the post war situation with the discovery of oil and opening up of former Ottoman territories to western commercial interests (and competion) and the rise of the Kemalists and their proven strength all facotred into the ease at which the atrocities - which had been headline news throughout the war - were swept under the rug - along with all accountability for the destruction of a people and culture that had essentially ceased to exist. And what followed was the strategic position of Turkey vis a vis the Soviet menace and again all incentive to push the Turks on this issue fell away. And now of course Turkey is seen as a bulwark against Islamic extremism and as and ally to Israel in the region...meanwhile the Turksih nation building myth has created a perspective on these times where most Turks cannot even concieve that they were not the victims who triumphed over all adversity - with the Armenian just having been another tool of their downfall that they overcame. To accept the truth of the history was/is to shake the very foundations of the Turkish nation - conceptually and in reality (as so much was based upon seizing the economic engines from the Greeks and Armenians...another hidden motivation for the actions against them in the first place - and this entire issue can be much more elaborated on as it is a central component of the whys of the Genocide - as much or perhaps even more then any true fear of Armenian national aspirations). Thus we can appreciate why denial of the genocide is foreign and domestic policy #1 for the Turks and has been since the beginning. Most have no real appreciation for the interwoven dynamics that have left us in our current state of affairs with official Turkish Government denial (now and from the time of the Genocide) and of the fanatical insistence from most Turks that no such thing ever occured.