Air Operations, Aleutians

After a Patrol Wing 4 PBY discovers a cargo vessel off Kiska, 3 28th Composite Bomb Group B-25s sink the vessel, and a B-24 on an armed reconnaissance mission severely damages or sinks another vessel off Kiska.

Air Operations, Bismarcks

6 43rd Heavy Bomb Group B-17 and 6 90th Bomb Group B-24s attack ships in the Rabaul area with with 500-pound and 1,000-pound bombs from 8,500 feet. Hits are claimed on 9 merchant ships and a destroyer tender. Encountered for the first time in the Bismarcks are Japanese Army fighters which have been ferried to Truk by carriers and the flown to Rabaul. 2 B-17s are lost. Among the airmen lost is Brig-Gen Kenneth N. Walker, commander of the V Bomber Command.

Air Operations, Pacific

B-17s and B-24s make a low-level attack on shipping at Rabaul, New Guinea.

Air Operations, Solomons

• VMF-121 F4Fs down 7 D3A 'Val' dive bombers over Guadalcanal around 0940 hours.
• AirSoPac B-17s, escorted by 339th Fighter Squadron P-38s, attack at a Japanese cruiser at Buin.
• 339th Fighter Squadron P-38s down 3 F1M 'Pete' reconnaissance float planes over Tonolei Harbor at 1630 hours. Two P-38s are lost.

Air Operations, Tunisia

• XII Bomber Command B-17s, escorted by P-38s, attack the power station at Sfax.
• XII Bomber Command B-26s, also escorted by P-38s, attack Kairouan.
• B-24s of IX Bomber Command's 93rd Heavy Bomb Group encountering heavy clouds over their primary target of Tunis, attack the harbor at Sousse instead.

Diplomatic Relations

18 Allied nations sign a formal declaration which will have the effect of nullifying Axis plundering in occupied Europe. The governments reserve all rights to invalidate all transfers and dealings of properties, rights, and interests in all territories seized by Germany and Italy.

Eastern Front

Neutral Swiss reports state that the Germans regard the situation on this front as very serious.

In the Caucasus the Russians recapture Nalchik(date?), east of the upper Terek, leaving large formations as rearguard to slow down the enemy advance. The Russians capture Prokhladny in the Caucasus and consolidate their gains farther north by taking Morozovsk and Tsimlyansk. An armored column of the Russian Stalingrad Front, advancing along the Don, recaptures Chinliansk.

Heavy fighting continues at Velikiye Luki with gradual Soviet gains. Wohler continues his relief attack but meets considerable Soviet resistance.

Prokhladrii falls to the 58th Army.

Guadalcanal

The Americans are unaware that the Japanese are beginning to execute their planned withdrawal. The staff section chiefs of the XIV Corps assume their duties. Gen Patch, in a letter of instruction to the 25th Div CG, Maj-Gen J. Lawton Collins, directs the 25th Div to relieve the 132nd Infantry, Americal Div, on Mount Austen and attack west some 3,000 yards. The 2nd Marine Div, holding the coastal sector from Point Cruz to Hill 66, is to maintain contact with the northern flank of the 25th Div. The Japanese stand on Mount Austen continues despite the growing American strength.

New Guinea

Advance elements of the Australian 18th Bde, with 4 tanks, reach Soputa. In preparation for an offensive on a vast scale against Sanananda the American 127th Inf Regt moves northwest along the coast towards Tarakena.

B-17F "San Antonio Rose" 41-24458 flying to Rabaul over New Britain (Credit: USAAF, 5th AF, 43rd BG / 5th CCU Date: January 5, 1943)

B-17F "San Antonio Rose" Flying to Rabaul

North Africa

The US 5th Army led by Lt-Gen Mark Clark becomes operational with headquarters at Oujda, Morocco. Assigned to 5th Army are the 1st Armored Div and II Corps. Gen Eisenhower activates the Allied Air Force, containing both the Eastern Air Command and the 12th Air Force, under the command of Gen Spaatz, who retains the command of 8th Air Forc as well.

The V Corps, British 1st Army, makes small gains near Djebel Azag and Djebel Ajred west of Mateur after hard fighting in heavy rain. The British also storm 'Green Hill'. The 8th Army reaches Buerat, about 60 miles west of Sirte.