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December 31st, 1940 (TUESDAY)

UNITED KINGDOM:
Lancashire: Sub-Lt Francis Haffey Brooke-Smith (1918-52), RNR, working head down and by feel only, gagged the fuse of a bomb wedged aboard a fire-float on the Manchester Ship Canal, seconds before it was due to go off. (GC)

Civilian casualties this month are 3,793 people killed and 5,244 injured.

London: Churchill sends a message to Petain via Dupuy. He offers to send six divisions to aid the defence of Morocco, Algiers and Tunis should the Vichy French government decide to cross to North Africa and resume the war against Germany and Italy.

Submarines HMS Sea Dog and Sibyl laid down.

GERMANY:
Hitler writes to Franco telling him that he is sorry that Spain decided not to join the Axis.

At least 200,000 ethnic Germans now living in countries outside Greater Germany are to be resettled within the Reich under agreements signed this year. Most will come from Romania and Bulgaria, but there are also 50,000 Germans in Lithuania, Latvia and Estonia whose transfer has been agreed with Russia. So far, however, it has been easier to reach international agreements than to cope with the physical upheaval of so many people, and few have yet to arrive in their notional fatherland.

U-126 launched.

CANADA: Minas Basin Ferry Kipawo removed from service. Requisitioned for naval service as HMCS Kipawa (clerical error) and served rest of war as an examination vessel.

Patrol vessel HMCS Raccoon (ex-yacht Halonia) commissioned.

U.S.A.:
Roosevelt proposes programme of relief for unoccupied France and Spain. Specifically to send milk and vitamin concentrates for children along with some medical supplies. Roosevelt telegrams Churchill to allow the ship through the British blockade.

Harbour tug USS Hoga is launched at Consolidated Shipbuilders, Morris Heights, New York. (John Nicholas)

Destroyer USS Boyle laid down.

BATTLE OF THE ATLANTIC:

Convoy HX-97 straggler MS Valparaiso sunk by U-38 60.01N, 23.00W - Grid AL 2787.

Tanker British Zeal damaged by U-65 at 15.40N 20.43W - Grid EJ 6315.

Losses: 42 ships of 239,000 tons and 1 armed merchant cruiser.
1 Italian U-boat.
MERCHANT SHIPPING WAR:
Losses: 34 ships of 83,000 tons.

MEDITERRANEAN SEA:
MERCHANT SHIPPING WAR: Losses: There are no shipping losses in December.
United States: The Dow-Jones Industrial Average finished the year at 131.13 -12.72%
down on the year.

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