In Burma... General Kawabe replaces General Iida in command of Japanese forces, which are now organized as the Burma Area Army. The Japanese are planning to extend their hold on northern Burma. Among the logistical preparations are the construction of new rail lines. About 60,000 Allied prisoners of war are employed in this work and about 15,000 will die through ill treatment.

From Washington... In an effort to control inflation, President Roosevelt forbids certain wage and price increases. He also orders workers not to change jobs in some industries unless this is beneficial to the war effort.