They were probably a lot like the current "Argentines" made by Savarez, which are a silver-plated wound string. Light gauges, probably 10's or 11's (remember, the scale length is longer on a petit-bouche SelMac style)
Action, I would have no idea, but A lot of gypsy players play with action that's as high as they can play cleanly on, as it produces more volume.
When I had a gypsy guitar the action was about 3mm on the bass side, and a shade over 2mm on the trebles. That always felt pretty good to me.
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