- Day 505 of the war
- The French liner Ville de la Ciotat is torpedoed by the German submarine U-34 off the coast off Crete in the Mediterranean. Of the 135 passengers and 181 crew, a total of 80 people perish, either killed by the explosion or drowned. The British steamship Meroe rescues the survivors and transports them to Malta.
- The Leader reports that soldiers in camp in Sydney have been granted five days leave over Christmas and a free pass to any town in the state. Soldiers’ Holidays