I should clarify my tire suggestion, my wife's Pasela 35's actually measure out to about 32mm. But certainly check. I removed the axle stops in the rear dropouts and "adjusted" the front fork to get a good fit on her Gitane. Peugeot forks may have more clearance. An LBS might let you try before you buy.

Try Kool Stop pads before you swap brakes, if you still want center pulls, you can reuse the pads. You will need cable hangers front and rear for center pulls. I just happen to have a set of Weinmanns for if you decide to go that route.