ISLIP, N.Y., JUNE 1 -- Town Supervisor Frank Jones withdrew his offer to take all the trash from the wandering garbage barge and suggested that New York City bury its half, burn it or "haul it to Gracie Mansion," residence of Mayor Edward I. Koch.

Jones said city officials have characterized the barge as Islip's problem even though much of the garbage apparently came from commercial establishments in New York City.

He said Islip would accept only 1,238 tons of the 3,186 tons of garbage on the barge, which was rejected by six states and three countries during a weeks-long voyage up and down the Atlantic and gulf coasts. It returned to New York after Islip agreed to accept it at a cost of $40 a ton at the local landfill.

Meanwhile, the tugboat Break of Dawn was told it could move the barge to Federal Anchorage 17, which is in the Hudson River but technically in New Jersey, just north of the George Washington Bridge, said Petty Officer Brad Terrill, a Coast Guard spokesman.

Most of the trash on the barge came from Islip and New York and a small amount came from Nassau County, officials said. If necessary, Jones said, town workers will sort through individual bales of garbage to determine where the waste came from.