Battle of the Atlantic

• Grumman Martlet fighters from the escort carrier HMS Audacity shoot down 2 Focke-Wulf Condors.
• U-108 sinks the British steamer Ruckinge (2869t) from Convoy HG-76 west of Lisbon with the loss of 3 of her crew. 14 survivors are picked up by the British sloop Stork, 25 more are picked up by the American steamer Finland.
• The British destroyer Stanley, escorting Convoy HG-76, is sunk by U-574 southwest of Portugal. 134 are lost on the destroyer. U-574 is then sunk by the British sloop Stork when the u-boat, damaged from depth charge attack, surfaced and is rammed by the sloop. 27 crewmen are lost on the u-boat. 20 of the crew are picked up.

  U-574

  Class	Type VIIC
  CO	Kapitänleutnant Dietrich Gengelbach
  Location	Atlantic, off Lisbon
  Cause	Ramming
  Casualties	27
  Survivors	20

Burma

The Japanese overrun Bokpyin, a village some 100 miles north of Victoria Point.

The SS Tulsa issue quickly develops into an incident. The American Military Mission to China (AMMISCA) under Brig-Gen John Magruder is authorized by the War Department to transfer Len-Lease materiél awaiting transportation in the port of Rangoon from Chinese to British control, subject to Generalissimo Chiang Kai-shek's approval. An American officer in Rangoon requests that the government of Burma impound the Lend-Lease materiél, most of which is on board the SS Tulsa in Rangoon harbor and destined for China. The Chinese representative in Burma, objecting to the transfer of material to the British, suggests a committee be formed to determine the disposition of the supplies.

Diplomatic Relations

Colombia severs its diplomatic ties with both Germany and Italy.

Eastern Front

In the Crimea the German attacks on Sevastopol continue.

Groups Katukov and Remizov outflank Volokolamsk from the north and southeast. The right flank of the 4th Army is on the brink of collapse as Soviet attacks pound the German lines. The XLVII Panzer and LIII Corps of the 2nd Panzer Army are forced back across the Plava.

Belov's II Guards Cavalry Corps is ordered to break into the German rear and advance upon Yukhnow to destabilize the 4th Army. The 10th Army is to support the attack, securing the group's flanks at Sukhinichi and Mosalsk.

Heavy fighting rages around Sevastopol as the 11th Army launches repeated attacks against the seemingly impregnable Soviet positions. Kozlov's Trans-Caucasus Front is responsible for the defense of Sevastopol but can do little to aid the port.

Field Marshal Brauchitsch, having tendered his resignation, is formally relieved of his post. Hitler decides to appoint himself Commander in Chief of the Army.

German Command

Hitler formally removes von Brauchitsch from his post of Commander in Chief of the army. Hitler directly assumes the responsibilities of this post himself, telling Halder that 'anyone can do this little matter of operational command'.

At first Hitler is remarkably successful, applying his considerable talents to mastering a range of detailed information relating to his task. It is generally agreed that his orders to stand fast, which he repeats throughout this winter campaign on the Eastern Front, will help save the German Army from an even more disastrous defeat.

The Germans will be able to retreat into admittedly isolated defensive localities based around what shelter can be obtained in the many villages. The Soviets will be unable to prevent Luftwaffe supply operations and will lack the heavy weapons or tanks necessary to break into the German defenses.

Hitler's clear perception of his own place in this defensive success will only serve to convince him further of his own ability as a general and of useless weakness of the army leaders. He will also remain convinced to the end that no retreat is a sufficient tactical answer to any attack in any circumstances. His belief in the army's failure also encourages him to expand the forces of the Waffen SS. Although these units will almost always fight fanatically in the German cause, their leaders often lack the training and experience of their army counterparts because they have been selected for Nazi Party reasons. The priority of equipment that the SS receives also means that more experienced army formations will end up going short.

Malaya

The Japanese are active against the right flank of the Krian River line and on the Grik road, they frustrate the efforts of the Indian III Corps to recover lost ground. The Indian 9th Division continues its withdrawl southward in eastern Malay and abandons the Kuala Krai railhead. RAF fighters based at Ipoh are forced to withdraw to Kuala Lumpur. The British aldo evacuate Penang Island and Georgetown harbor.

Mediterranean

• Adm Vian's squadron is caught in a minefield off Tripoli. The cruiser Neptune hits 4 mines and sinks. There is only 1 survivor. A destroyer is also lost.

  HMS Neptune

• U-652 sinks the Soviet steamer Varlaam Avanesov (6775t) in the Aegean Sea. The entire crew are rescued.

North Africa

The Axis retreat through Cyrenaica continues. The following Allied troops reach Derna. Derna and Mechili are captured.

British Troops Enter Derna

Pacific

• The Japanese submarine I-172 sinks the American steamer Prusa (5113t) 150 miles south of Hawaii with the loss of 8 crewmen. 14 suvivors are picked up by the American cutter Tiger. 11 more survivors reach safety after a 2700 mile voyage to Fiji.
• Soviet steamers Krechet (2282t), Sergei Lazo (2975t), Simferopol (2696t), and Svirstroi (4769t) are sunk by Japanese bombing at Hong Kong.

Philippines

During the night the Japanese land near Davao on Mindanao. The carrier Ryujo is in support and the landing force is made up of 500 men from the 56th Inf Regt. Work begins to turn the island into a vast fortified base.

United States, Home Front

The Selective Service Act is amended, making it compulsory for all men 18-64 to register and for those 20-44 to be subject to military service. The Act is signed by Roosevelt on Dec 22.

United States, Policy

President Roosevelt signs an executive order establishing the Office of Censorship under Byron Price, a former Associated Press editor. Price is given absolute discretion to censor all international communications. Price seek voluntary compliance by military and civilian supervisors to prevent information of potential benefit to the enemy from being published. By 1942, 10,000 federal employess in 18 censorship stations across the country will be examining mail going overseas.