Cloth or paper (3)
I believe the answer is:
rag
This clue is a double definition.
'cloth' is the first definition.
(rag is a kind of cloth)
'paper' is the second definition.
(rag paper is a kind of paper)
'or' acts as a link.
(Other definitions for rag that I've seen before include "Student event" , "Torn piece of cloth or university japes" , "Make fun of; scrap" , "some jazz music" , "Scrap of old cloth" .)