Yes, that's the place that one end of the wire connects (connects to number 2 in the picture). But it looks like the other end of mine goes into some kind of a oil pressure sending unit on the engine block. I'll get some pictures.
My battery turnoffs is on the transmission hump between the driver and passenger seats. I purchased, from Kaiser-Jeep Auto Supply, this wire (originally from a M 38) :
http://www.m715zone.com/vb/attachmen...1&d=1556841592