That would have been for the Dole primer pump. It picked fuel up from the main fuel line and injected it into the intake manifold (in the case of the M38A1: the head).
The primer lever on the pump usually works. Some pumps had the arm removed during rebuild, but there is nothing wrong with having it. Most guys don't know they are even there. Saves a lot of cranking after the vehicle has been sitting for an extended period, or if you ran out of fuel.
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