Thanks to all, but Albert's post gave me the answer, a bit indirectly, though. I originally created my html document as an email and imbedded the image directly in the email, mixing htm & mime. All I needed to do was change the extension on my document from .htm to .mht.
The pertinent part of my document code is:
<img border=3 width="360" height="360" src="cid:001@mime.mail"></table></div></body></html>
--_=_Boundary_001_VXUXGWO1.FBLEINFI
Content-Type: application/octet-stream; name="1.jpg"
Content-Disposition: attachment; filename="1.jpg"
Content-ID: <001@mime.mail>
Content-Transfer-Encoding: base64
Content-Description: 1.jpg
/9j/4AAQSkZJRgABAQAAAQABAAD/2wBDAA...
Notice the src="cid:001@mime.mail" corresponds to the Content-ID tag just above where the actual image data starts.