The axe handle goes through a loop just behind the step. The shovel point goes in a bracket above the the point where the front fender and the step meet.
Installation instructions, according to the TM 9-803 manual where this drawing is found, are the following: “Turn bit, or blade, of ax up. Insert handle in front clamp. Insert blade in sheath. Pull up clamp under ax head, and strap in place. Turn face of shovel against cowl and place in strap on cowl side. Wrap fabric strap, through handle, over grip, between grip and side of body, through loop ,over outside of grip, and buckle. NOTE: This will hold the shovel forward in the strap on the cowl side.“