Created attachment 102234 [details]
Image code appears as LibreOffice as if it were text.

When I insert a linked image in an HTML document (or edit an old HTML page with a linked image) the image becomes fully embedded in the HTML document. Although the document still appears as intended when viewed in a web browser, this has the following consequences:

(A) The file is much larger thanm necessary; 
(B) In LibreOffice, either the file cannot be re-edited, or the image coding in the document.

Steps to create the problem:

1. Save a LibreOffice document as HTML

2. Insert a linked image:

From the menu, choose Insert > Image > From File … > 
Check the “link” box
Enter the filename "http://grapevine.net.au/~mccluskeyarundell/NoFootpathsBulahdelah.jpg"
Click “Open”
If requested, click “keep link.”

Step 3: Save the document.

Expected result:
a. The document size should be about 2 kB.
b. When re-opened in LibreOffice, the document should appear with the text unchanged and the graphic displayed as expected.

Actual result:
The document size is about 100 kB.
When re-opened in LibreOffice, the document appears as in the uploaded attachment.