Tar Paper in Basement Wall: Should I keep it or remove it?

In my walkout basement, I removed some old 2x3 walls with very old fibreglass insulation that were built in front of my concrete walls so that I can rebuild new 2x4s with new batt insulation...then I found this. Very old tar paper that appears to be intact but is quite ratty, somewhat brittle and deteriorating on the bottom edges. These edges appear to have been under the bottom plate of the 2x3 stud wall which was covered it poly. Do I keep the tar paper? I feel like some of the bottom edges make contact the new stud wall. Or do I simply remove the tar paper? And if so, what can I replace it with? Or can I leave it bare? There will be a bare minimum half inch gap between the new stud walls and the concrete wall. The spaces above the tar paper is house wrap covering studs on top of the foundation wall, which has fibreboard sheathing. Any help would be very appreciated!