McCalls 5830 help!

Okay, I'm making McCalls 5830 from the 40s for my niece. I've got a very cute flannel and found the pattern in the right size. As she's really tall for her age and size (3s drown her, but 2s are too short) I've lengthened everything by two inches. I'm making view A, which will look adorable in her surfing alligators and "Nemo"s fabric. My problem is that my pattern is missing the instructions, and it includes a piece that I don't know what to do with. The rest of the pattern is straightforward enough that it's otherwise not a problem...

Can anyone tell me what the "stay" is for? Does it go around the neckline and front placket to keep the fabric from stretching out, or does it go around the waist as extra reinforcement for the buttons?

Those are my current best guesses for what it's for...