The butterfly is the auto-choke. This is spring-loaded closed by the diaphragm, and should be opened by manifold vacuum when the engine starts. If it only starts when you hold it OPEN, it implies that the mixture is way too rich, which is a symptom of a ruptured diaphragm.
Does it run OK once started?
phil_saunders(a)bigfoot.com
Phil Saunders, April 2009