KZ440 - Belt Drive wires

Hi, I've recently been given KZ440 LTD Belt Drive (West German model) and I've decided to customise it a little bit without any previous electrical or mechanical expericence (heh) . Previous owner put on LED headlight, turn signals, and tail light. I put on LiFePo4 battery and will be making underseat tray for it and making new warning lights dash. Since i will be reorganising electrical component, I decided to tidy up wires a little bit since everything was wrapped together in electrical tape. After taking off the tape and cleaning the wires i have found this thing just hanging around. I've looked into the wiring diagram but cannot trace it. It goes into left handlebar switch with Black/Yellow wire and then splits into Red wire that goes to the front near headlight.

The bike also doesnt have few things installed right now (Horn, speedo, tachometer, warning lights)
Tailight, turn signals and healight are connected (Headlight has red wire not connected to anything which i think is DRL)

Thank you for help

I fixed your pictures to be full size 
Next time  please click the insert all tab to complete the install
Dave