It's a sediment bowl filter like they use on old tractors. 

Fast forward video to about minute 13 to see flat screen above bowl.  Yours is the same thing just much smaller. 

Principle is fuel enters through hole in center of screen, junk settles in bowl because to get out it would have to go up through screen and dirt will not tend to float anyway and will naturally settle at bottom of cup..

Mark thanks for all the help. Do you know what size gasket/seal I need and where to get it for that little bowl?

 I probably used an o-ring out of an assortment kit that fit. 

Hello Mark,

I got my MG1-T all cleaned up and it seems to be over heating when I start it up. It will eventually rev up and shut off. Could this be due to old gear oil? I have cleaned the carb but maybe need to go through more thoroughly?

Impossible to say.  Could have an air leak or something too. 

TINY jets in that tiny carb so can be hard to clean...  I had to clean mine several times and even bought a spare on ebay because I couldn't get it to idle...  of course while I was waiting for the carb I cleaned the one I had in a Harbor Freight ultrasonic cleaner...  a bunch of crud came out, and it ran fine after that.  Never needed the other carb.

Interesting. I will try to clean mine in the ultrasonic cleaner. Are there any precautions I need to take? Thanks for the help!

Oh, and you are running oil in the fuel, right?  No autolube on that model. 

 

Yes 20:1 mix 

One other thought is make sure it simply isn't running out of fuel.  Has a small tank and quite a bit of reserve. 

If I remember the petcock correctly, lever forward is "off".  Lever straight down is "on".  Lever to rear is "reserve".   I think when lever is pointing forward you can read "off" cast into the top of the lever and when it's pointing to the rear you can read "reserve" in tiny letters.

Fuel cap vent can also get plugged...  simple test is try running it with cap removed.