31 December - DAY 32 of Winter War
Northern Finland: the enemy is pushed back across the border in the Kuhmo sector.
Fighting continues at Suomussalmi.
Finnish forces halt the Russian offensives in all sectors along the front.
Jyväskylä and Vaasa are subjected to fierce enemy bombing killing 21 civilians in Jyväskylä and four in Vaasa. Both towns suffer serious damage.
President Kyösti Kallio hosts a reception to celebrate the New Year. Those present include the Speaker of Parliament, Väinö Hakkila, Prime Minister Risto Ryti and Members of Parliament.
Foreign Minister Väinö Tanner gives an interview to the Swedish newspapers' telegraph office, TT, in which he welcomes Swedish volunteers to Finland.
The Central Organization of Finnish Trade Unions (SAK) publishes its New Year message to Finnish workers. The SAK emphasizes the trade union movement's determination to defend Finnish independence and democracy.
Abroad: in Amsterdam, persons unknown raise the Finnish flag on the mast of the Soviet steamship Joseph Stalin. (

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Daily losses: 114