Your car looks a little different than mine in this area, and my car is a 95, too.
But the line you pointed out in the first picture goes to a valve which is mounted on the driver side shock tower. The line comes out of that valve goes to the charcoal canister.
The diagram looks like this on RealOEM:
http://www.realoem.com/bmw/showparts...72&hg=13&fg=15 But on the car, it looks like this:
By the way, the build date on my car is 10/95, so some things my be a little different than yours.