WASHINGTON, June 10 (Reuters) - U.S. President Donald Trump

said on Wednesday he is directing loyalist Bill Pulte to

downsize the top U.S. intelligence office while he looks for a

permanent head of the office, an apparent bid to placate

lawmakers opposed to Pulte's interim appointment.

But Trump said he was unwilling to meet a demand to withdraw

Pulte by Democrats, whose votes are needed to extend a foreign

surveillance program that expires on Friday.

The standoff on Capitol Hill over Trump's choice of Pulte as

acting head of the Office of the Director of National

Intelligence has stalled renewal of Section 702 of the Foreign

Intelligence Surveillance Act.

"I have named William Pulte to be Acting Director of

National Intelligence, who will take over on June 19th, and have

asked him to execute the immediate and needed downsizing of the

office, reverting staff to their home agencies," Trump wrote.

"At the same time, I am looking for a permanent ODNI Nominee

with experience in National Security."

Trump called on Congress to send him a short-term extension

of Section 702 to provide time to install a permanent director.

Section 702 allows U.S. intelligence agencies to collect

emails, texts and cellphone data of foreigners believed to be

located outside the United States without individual judicial

warrants.

All but one Senate Democrat last week voted to block renewal

of the warrantless foreign surveillance authority, citing

Pulte's lack of national security experience.

They also cited his use of confidential mortgage data to

promote mortgage fraud investigations of several of Trump's

perceived political foes, expressing concern he could do the

same with top-secret intelligence.

Seven Republicans also voted against proceeding with renewal

of Section 702.

Some of those lawmakers seek greater protections for

Americans' information inadvertently collected when foreigners'

communications are monitored without warrants, while others have

long voiced concerns about surveillance programs in general.