Peter is right, a felt washer. I cut out of a 5mm thick felt sheet a washer at roughly the same size as the mag gear.
The slinger at the back of the mag gear function in conjuncture with a steel ring that is pressed in the cam chest. Air is pulsating slightly and oil mist can migrate to the outside. The gear ring do sling most mist outward by centripetal force, and then the cam chest ring together form a kind of "silent compartment" or labyrinth where fresh air is entering the cam chest. The little oil mist that remains is slowed down in the labyrinth to be collected in a groove, and evacuated via a small hole at the bottom.
That ring in the cam chest can sometimes be worn out or discarded with but that seems not be of that great importance. What is more important is the felt washer that prevents water spray and dust from the front wheel to enter the motor.
The motor needs fresh air for the ventilation to function properly and perhaps even for the lubrication to work properly, so it's not that great idea to make an air tight seal there. In a pinch the washer can be cut apart in order to be mounted after the magneto is fastened. Or a couple of turns with thick soft cotton yarn can be used, it is better than leave it open.
In the case of the later motors where the ventilation is moved to the cam cover opposite the mag gear, the labyrinth may be of greater importance as the direction of the flow of air is changed. From what I can read in the parts list, they both have the same felt washer 26 B 105 Magneto shaft cam case felt washer.