It's a fastener.

Posted by Fall Guy from pool1077.cvx19-bradley.dialup.earthlink.net on August 18, 2001 at 00:06:09:

In Reply to: Who can tell me what that metal circle is on the SIDE of the MK VII bag is? posted by schwammy on August 17, 2001 at 23:27:45:

A thin strap or string was worn around the body and attached to that disc in order to keep the bag from flopping around when running.
FG
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