The two examples from the excerpt that identify problems with the British policy of appeasement are:
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"A German absorption of Czechoslovakia will enhance her military prestige, increase her war potential and probably enable her to dispose of stronger land forces."
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"if war with Germany has to come, it would be better to fight her in say 6-12 months’ time, than to accept the present challenge."
These statements highlight the dangers of allowing Germany to expand its power and military capabilities through appeasement, indicating that failing to confront Germany now may lead to a stronger and more formidable enemy in the future.