General Westmoreland means that in war fear of death is present in every individual even in a brave people. In war, fear is hidden in the courage showed by the people. There is no one who can't fear in the war because everyone knew that there is a possibility of death or injury in the war. But in the war, people hid their fear through courage so that's why General Westmoreland was right in their statement about fear.
Imagination overcomes reason when the desire or need for something to be true, or the fear that something is true, is stronger than the persuasive power of logic and observation.