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the one of the pads is not so close to the rim
Would suggest they are broken, since they should auto adjust them selves.. But you could start by draining all the hydraulic fluid, checking if the pads move free by hand and then filling and bleeding the system again.
Nice frame though! I'd try a disc conversion on it :)
Jaap
I've been given this old Saracen, which looks like it dates back to the early 90's. It's got Magura rim brakes, the rear of which need adjusting so the one of the pads is not so close to the rim. This my first experience with hydraulic rim brakes - Any idea how to slacken-off the pads?