This song takes place during World War I, and follows up on "Snoopy Vs. The Red Baron
," where Snoopy is a fighter pilot. In "Snoopy's Christmas," The Red Baron decides not to shoot Snoopy down, but forces him to land and gives him a Christmas gift.
There really was a Christmas Truce in 1914 between the British and German troops, mainly on the Western Front. Trench warfare had created a bit of a stalemate, and the soldiers were able to communicate with each other. They negotiated a cease-fire and even exchanged small gifts like whiskey, rum, cigars, and chocolates, meeting in "No Man's Land," which was the battlefield between the trenches.