email clients not showing base64 image

  • Using WPTools 7.25 with Delphi Seattle.

    When I save a merged document to html the html seems to encode the image data correct. In the html file I see the base64 img tag.
    <img border="0" style="width:5.42in;height:4.07in;" src="data:image/jpeg;base64,/9j/4AAQSkZJRgABAgEASABI.......

    When this same html is sent as a email body, the to email clients like gmail and outlook the email clients are not displaying the image but rather showing broken image link box. When I open this same html as a file in a browser the image displays as expected. What could I be missing?

    Thanks for your help.