Finland. Red Army closes in on Viipuri, with fighting in the suburb of Tali. They capture more islands in Viipurinlahti Bay. Finnish delegates in Moscow begin negotiations in the evening with Molotov, Zdanov and General Vasilevski but not Stalin, to their disappointment. Finns ask for a ceasefire during negotiations. The Soviets know that they are about to take Viipuri and refuse, preferring to negotiate from a position of strength.
British steamer Counsellor (command ship of HX-22 convoy’s commodore Rear Admiral Franklin) strikes a mine in Liverpool Bay, England. The Admiral, his 7 naval staff and all 70 crew are picked up by destroyer HMS Walpole and landed at Liverpool. These mines laid on 6 Jan by U-30 have claimed 6 ships (total 33,000 tons). http://www.uboat.net/allies/merchants/ships/287.html
British cruiser HMS Dunedin & Canadian destroyer HMCS Assiniboine capture German steamer SS Hanover near Jamaica. Hannover will be converted into escort aircraft carrier HMS Audacity.