That is what Ford called a exhaust gas recirculation control switch. It took the signal from the speed sensor in the speedometer cable and was used to control the EGR valve along with all the other devices such as the ported vacuum switches. Was used on 73 351C, 400, 429, 460, and 460 interceptors. In 1974 was only used on the 460 interceptor's, as 1975 saw the introduction of catalytic converters and a major change in EGR and related emissions systems.
A lot of people mistake this for the cruise control speed sensor since it is in the same location as a car that has factory cruise control. Cruise control was not a RPO (Regular production option) on the 71-73 Mustangs.