That micro switch switch goes on the heater control valve. It is mounted such that the heater temperature control lever must be set to full cold (i.e. heater valve closed) in order for the switch to close.
This insurers that the auxiliary blower doesn't turn on when you want to use the heater.
Vintage Car Solutions
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94 164LS; 83 GTV6; 74 Spider; 67 Fiat 124 Sedan