Connector 204 identification issues

[1983G]

1983 GLX convertible, 3.8L original engine (now a BB460)
The car runs fine, no real issues. What I was trying to do, was get the in dash water temp and oil pressure gauges to work
I have installed mechanical gauges, Attachment 136933independent oil pressure, voltmeter, and water temp gauges
I believe that I have identified connector 204, which contains the R/W and W/R wires for the water temp (circuit 39) and the oil switch (circuit 31) Also in connector 204, is a Y/R wire, that I believe is for the cooling fan trigger. I could not find that circuit on any of the wiring diagrams, or the identification of the single wire connector at the end of the yellow/red wire. I did ground out the Y/R wire, and I did hear either a relay click under the dash (or a re-settable breaker). I think that the clicking I heard was in the fan control module. Any way, none of this is what I am after. On the female side of the connector, the R/W, W/R wires are connected to a loop of wire,
This is the info that I am after. Why the big loop from circuit 31, right back to circuit 39?

[1983G]

The other side of connector 204
101" of black wire in a loop, going nowhere
Any idea of what this is for?
This wire forms a loop, with the R/W and W/R, which, according to the wiring diagram, is for the oil pressure and water temperature circuits
I think the only other wire is Y/R, which may control the cooling fan