HMS Durham Castle hits a mine, laid by U-57 on 21 Jan, and sinks 11 miles off the Northeast coast of Scotland. Durham Castle, an 8,000 ton former passenger ship with Union-Castle Mail SS Co. and recently requisitioned by the Admiralty, is being towed to Scapa Flow for use as a stores and accommodation ship.
Finland. Fighting continues along the Taipale River at the eastern end of the Karelian Isthmus. Finnish 7th Division defending Taipale announces overall losses of 816 men killed and 2020 wounded, since the start of the war. Soviet losses are unknown but likely 10 times this, given the WWI-like slaughter that has taken place. Further North, the last units of Finnish 9th division arrive in the village of Kuhmo for the assault on Soviet 54th division.
Phoney war. About half the 750,000 children evacuated from London since Sept 1939 have now returned. Many people in England believe that war with Germany has been averted.