Morrowind Mod:Drop

Drop

                Drop, ObjectID, Count

       Where:   ObjectID = Object to drop
                Count    = Number of the object to drop

        Type:   Object

     Returns:   none

     Example:   player->Drop, "gold_001", 100
                Drop, "amulet of mark", 1
                Drop, Slave_Bracer_Left, 1

     Scripts:   slaveScript
                CharGenDagger

The calling NPC drops the given number of the item into world at his feet. Presumably it only works if the calling actor has enough of the item to drop. There does appear to be some problems dropping items from NPCs where the item is dropped at the player's feet instead of the NPCs (works in the slave script though).