"We got our first half right but that's not good enough at this level.
"We were well aware of what they were going to throw at us. We had plans but the execution wasn't quite right."
The game finally got under way at 1220 BST, more than two hours behind schedule because of rain, and New Zealand were happy to win the toss and put their opponents in.
But Ryan Watson came out with guns blazing, smashing Iain O'Brien for four boundaries from the opening over.
Twelve runs came off the second over, bowled by James Franklin, and the Black Caps were under serious pressure.
Even after Watson finally fell to Ian Butler, holing out in the covers, Kyle Coetzer smashed his first ball for four and the onslaught continued apace.
The gentle medium pace of Jesse Ryder, who was called on to bowl the fifth over, could not staunch the flow: Coetzer drilled a wonderful six over wide mid-off either side of two further boundaries.
Ryan Watson ended up on the losing side despite some fine hitting
Then Navdeep Poonia hammered Jacob Oram high into the stands, and with three balls left of the innings Scotland were 89-1.
Back came Butler, who had Coetzer caught behind before clean-bowling Colin Smith. In between, Poonia was run out so the last three balls had failed to move the total.
Nevertheless, New Zealand began their chase with an eye-watering required run-rate of 12.86.
Skipper Brendon McCullum, deputising for the injured Daniel Vettori, was given an inviting unprotected offside boundary for the first over, bowled by Gordon Drummond.
He calmly gave himself room and cleared the in-fielders for four balls in succession and New Zealand were in the hunt.
Ryder took slightly longer to warm up, but spectacularly took 20 runs off the first four balls off Craig Wright's over, the third of the innings, before holing out at long-off.
Despite the needless subsequent run-out of McCullum, New Zealand needed just 26 from the last three overs and were suddenly cruising home.
Watson came up to bowl the only over of spin in the match, and should have had Oram caught by Drummond. But the nervous fielder failed to get his hands under the chance, and ended up drop-kicking it in absurd fashion over the boundary.
No further runs were scored in an excellent over from Watson, but Jan Stander's first ball was a no-ball, and the resultant free hit was deposited over long-on for six by Taylor. Two more sixes in the over settled the issue.
Afterwards McCullum said: "It was a tight one. We got an incredible game of cricket inside 14 overs.
"At half-time we were pretty nervous as the Scottish boys played incredibly well with the bat.
"Our bowlers didn't perform as we would have hoped and we'll have to work on that.
"Jesse Ryder hit the ball incredibly well and we've shown how dangerous our batting can be and hopefully we'll see more of it in the rest of the tournament."
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