You Have A Hybrid, I Think!
There were some very early 1205's that used a pigtail hose (the kind of hose you have, with a wire coming out of it that plugged in to an outlet on the front of the machine, right under the suction port). But the vast majority of 1205's do NOT have the outlet; they are intended to be used with an electrified hose that has the wire built in to it. On those machines, the suction port itself is electrified; the metal end of the hose carries the current into a wire built in to the hose.
It sounds like you've got one of the later 1205's that was intended to be used with an electrified hose, sold to you with a pigtail hose that is incorrect for the machine. Did you just buy this from eBay? You may want to point this out to the seller, and see if they have a way of getting the correct hose to you.
If you do not have any recourse on the hose, the correct one is available on eBay, at the link below. This hose has a swivel grip like an original Electrolux hose. Other, cheaper hoses are available on eBay for as little as $27; just search on "electrolux hose". You need a hose that is listed as being an ELECTRIC hose, that fits METAL canisters; the hose for the newer, plastic Electroluxes is different. And you need one that does NOT have a pigtail. If it's any consolation to you, the pigtail hoses typically cost much more than the hoses with the built-in wiring.
And I hope you know what a fine machine the 1205 is- it's a vacuum that will last you a long time, if properly cared for. Even if it needs a repair or two at some point in the future, it's well worth it- new Electroluxes (called Aerus now) go for between $800 and $2000. 1205's are also very quiet machines.
Congratulations! You'll be very happy once you have the right hose.
http://cgi.ebay.com/Electrolux-hose...4QQihZ015QQcategoryZ20615QQrdZ1QQcmdZViewItem