Air Operations, Bismarcks

43rd Heavy Bomb Group B-17s and 90th Heavy Bomb Group B-24s attack shipping at Rabaul and airfields at Gasmata and Rabaul.

Air Operations, CBI

6 11th Medium Bomb Squadron B-25s attack the rail line and airfield at Myitnge and a 23rd Fighter Group P-40 downs a Japanese Ki-45 'Nick' fighter near Bhamo.

Air Operations, Mediterranean

During the night US bombers raid 3 airfields on Crete.

Atlantic

The German blockade runner Rhakotis is sunk by the HMS Scylla off Cape Finisterre. Hitler orders all big warships to be laid up.

Eastern Front

6 Russian armies keep up their pressure on the German forces surrounded at Stalingrad. The area defended by the Germans is reduce to approximately 25 by 40 miles. The efforts of the Luftwaffe to bring in supplies and to evacuate the more seriously wounded cost them an ever increasing number of aircraft. In order to escape the threat of encirclement themselves, the Hoth armored group, reinforced by troops recalled from France, retreats to 120 miles southwest of Stalingrad.

New Year's Day on the Eastern Front, 1 January 1943

During the first part of January, the Luftwaffe never delivered more than 120 tons daily, less than a third of the Germans' minimum requirements.

In the central sector after vicious street fighting the Soviets capture Velikiye Luki, an important railway junction north of Vitebsk. Acting on Hitler's orders, the German commander, Maj-Gen Theodor Scherer, orders his troops to resist to the death. The town has been under German occupation since August 1941 and is strategically important in supplying forces involved in trying to take the Russian capital. The Russians, fighting for every house and street, annihilate the Germans. Other important positions taken include Elista and Chikola.

The 3rd Shock Army demands the surrender of the much-reduced garrison of Velikiye Luki but is refused. Only the citadel still remains in German hands, the remainder of the town having been overwhelmed.

At Stalingrad the Stalingrad Front (Eremenko) is moved to the outer ring, leaving the Don Front (Rokossovsky) to surround the pocket.

With the reduction of Paulus' 6th Army imminent, the Stavka reorganize its southern commands. Eremenko's Stalingrad Front is renamed the South Front and is deployed along the outer ring. Rokossovsky's Don Front now takes complete responsibility for the pocket, taking the 62nd, 64th and 57th Armies under its command. In Stavka reserve a new 1st Tank Army is raised while the 2nd Tank Army is created around the core of the 3rd Reserve Army.

Guadalcanal

From Hill 11, the 2nd Battalion, 132nd Infantry, marches slowly south and west over precipitous terrain to the southeast slope of Hill 27, arriving too late in the day to open the assault as planned. The 27th Regimental Combat Team, 25th Division, arrives on the island.

The Japanese High Command decides to evacuate Guadalcanal. The convoy carrying the main body of the 28th Div, commanded by Gen Tadayoshi Sano, has been almost totally destroyed. Out of 11 transports, 6 have been sunk, 1 seriously damaged and 4 have had to be grounded in shallow waters off the coast to avoid sinking. The decision means losing the Solomons, and with them the master of the northeast approaches to Australian and New Zealand. But such huge sacrifices can no longer be borne. Since August 7th, the day the Marines landed, the Japanese have lost 65 naval vessels and over 800 aircraft, in addition to the human losses. Emperor Hirohito approves the decision. The evacuation is to be carried out gradually, and the task is entrusted to the destroyers of the 'Tokyo Night Express' under the brilliant Rear-Adm Raizo Tanaka.

Meanwhile, Gen Alexander A. Vandegrift's Marines on the island have been almost completely replaced by fresh forces - the 2nd Marine Div, the Americal Div and the 25th Inf Div of the Army forming the XIV Corps under the command of Gen Alexander Patch. In readiness for the final offensive activity is concentrated on the Gifu strongpoint, on Mount Austen, still obstinately defended by 500 Japanese.

Mediterranean

The British submarine P-311, en route to Maddalena, Sardinia, is lost probably on a mine in the Strait of Bonifacio with the loss of her entire crew of 65.

New Guniea

Heavy attacks against Japanese positions at Buna continue. After a heavy artillery preparation, Urbana Force attacks Buna Mission, but makes little progress. Seeing the situation as hopeless, some of the garrison are seen leaving the Mission by swimming. At Giropa Point a Japanese unit is surrounded, while an Australian battalion with armored support moves east from Giropa Point mopping up the Japanese along the coast as far as the Simemi River.

Australians Behind an M3 Stuart Tank

Australian soldiers Cpl. R.F. Rodgers and Pvt. G. Rheinberger take cover behind an M3 Stuart during the assault on Buna, New Guinea, January 1, 1943

Fighting during the Final Assault on Buna

1 January 1943. Australian machine gunners in action around 5.30 pm on New Years Day. The dead man on the left was Corporal Charles Knight. Private John Senior is behind the gun and Sergeant G.C. Lowe on the right. This photograph was taken during the fighting.

North Africa

Gen Eisenhower places Gen Fredendall in command of the US II Corps, which is planning for Operation SATIN, the capture of Sfax, Tunisia to prevent the junction of the Axis armies. Units involved in the operation will be the 1st Armored Div and the 26th Regimental Combat Team of the 1st Infantry Div. AFHQ takes responsibility for communication lines from Bône to Constantine, relieving the British 1st Army.

United States, Home Front

A law limiting all Americans to a maximum annual salary of $25,000 goes into effect. It will be repealed before the end of the year as well-intentioned by impractical method of fighting inflation.