ALEUTIAN ISLANDS: Three B-25s, three B-25s and eight P-38s heading for Kiska Island are forced back by bad wether. The weather aircraft cannot see into Kiska Harbor or Gertrude Cove. Two B-24s fly photographic reconnaissance over Amchitka Island and encounter poor weather. A USN PBY Catalina
unsuccessfully searches the islands east of Segula Island for a missing PBY.
BISMARCK ARCHIPELAGO: Fifth Air Force B-24s bomb the airfield at Gasmata on New Britain Island.
BURMA: Fighters of the USAAF Tenth Air Forces's China Air Task Force continue to hit transportation targets, strafing a truck convoy on the Burma Road. The strikes begin near Loiwing and cover 30 miles of highway. At least five trucks are destroyed and others damaged. Six B-25s bomb Monywa Airfield.
INDIAN OCEAN: German auxiliary cruiser HK Michel, known to the British as Raider H, sinks the 7,040 British freighter SS Empire March south of the Cape of Good Hope. The freighter was sailing from Durban, South Africa,. to Trinidad (located off the coast of Venezuela) with a crew of 29 and a cargo of iron, tea, peanuts and jute. Michel opened fire, knocking out the bridge and the radio room and turning the freighter into "an inferno from stem to stern, but still moving." To dispatch the blazing wreck quickly, the captain of the Michel fires two torpedoes, one of which misses. Twenty six crewmen of the freighter are picked up, with another man being found the next day when Michel returned to search
for anyone who might have been missed. This is the last ship sunk by Michel on her first cruise. On 8 January, the auxiliary cruiser is ordered to proceed to Japan and while en route, the prisoners were handed over to the Japanese at Singapore. On this first crew, the German raider spent 354 days at sea and sank 15 ships totaling 99,386 tons.
NEW GUINEA: In Papua New Guinea, the Urbana Force overruns Buna Mission in a concerted assault and organized resistance ends at 1632 hours local. The top Japanese commanders, Captain Yasuda Yoshitatsu and Colonel Yamamoto Hiroshi, commit suicide. The Japanese withdrawal from the Kokoda trail enables the Allies to plan the encirclement of important Japanese positions in the Buna, Sanananda and Gona beachhead. Buna is the second of the three to fall to the Allies after weeks of heavy fighting. With the Mission clear, Company C of the 127th Infantry Regiment, 32d Infantry Division, joins Company B in an attack along the coast toward Giropa Point, and by 1930 hours, makes a junction with the
Warren Force. The Warren Force, in a final attack, finishes clearing the region from Giropa Point eastward. The Australian 2/9th Battalion, 18th Brigade, 7th Division, clears the Japanese troops from the east bank of Simemi Creek and the 2/12th Battalion, 18th Brigade, heads for Giropa Point. Japanese forces move forward from Giruwa to rescue the survivors of the Buna garrison.
The Japanese have lost at least 1,400 men at Buna: 500 west of Giropa Point and 900 east of it. Casualties of the U.S. 32d Infantry Division and Australian 18th Brigade total 2,817 (620 killed, 2,065 wounded, 132 missing).
In preparation for stepping up action on the Sanananda front, where a stalemate has existed for
some time, Australian Lieutenant General Edmund Herring, General Officer Commanding I Australian Corps, orders 25-pound (87.6 mm) artillery pieces from Buna to that area.
The 1st Battalion and Headquarters, U.S. 163d Infantry Regiment, 41st Infantry Division, take responsibility for the Huggins and Kano blocks on the trail to Sanananda, gradually relieving the Australians, between 2 and 4 January. Huggins is renamed Musket.
Fifth Air Force A-20s, B-25s and B-26s hit the airfield and targets of opportunity at Lae, Northeast New Guinea.
While surveying the Milne Bay, Papua New Guinea, the Australian minesweeper HMAS Whyalla and survey vessels Stella and Polaris, are attacked by 18 Japanese aircraft.
SOLOMON ISLANDS: On Guadalcanal, Major General Millard Harmon, Commanding General U.S. Army Forces in the South Pacific Area, activates XIV Corps, consisting of the Americal and 25th Infantry Divisions, the former reinforced by the 147th Infantry Regiment. The 2d Marine Division and
other Marine ground forces are attached to the corps.
Major General Alexander Patch is placed in command of XIV Corps, and Brigadier General Edmund Sebree succeeds him as commander of Americal Division. After a heavy artillery preparation, the 132d Infantry Regiment, Americal Division, continues its offensive against the Gifu strongpoint. The 2d Battalion. taking the Japanese by surprise, advances quickly to the crest of Hill 27, south of the Gifu strongpoint, and digs in and holds firm under a number of counter attacks. The 3d and 1st Battalions establish lines along the northern and eastern sides of the Gifu, respectively, but gaps remain between the three assault battalions.
In the air, B-17s, with P-38s, and USMC SBDs, with F4Fs, bomb ten supply-carrying Japanese destroyers west of Rendova Island; the SBDs damage the destroyer HIJMS Sukukaze. The F4Fs shoot down two Zero's and an SBD rear gunner shoots down a third Zero. Eleven PT boats attack the force off Cape Esperance without success.