The heater 'ring' is in place of the flaps in the fanshroud of a post '65 engine. This sits behind the fan inlets and regulates the amount of cooling air entering. It uses to same thermostat.
Here is a little video of it opening and closing, albeit on an early 60s engine.
The exchangers are only controlled by you inside the car, either directing the heat into the heater boxes (exchangers) or out the back.
Some close-up shots. These may differ slightly to a 30 horse engine, but it is basically the same.






I new these photos would come in handy when doing my top end rebuild....8)