Newer svn:externals silently clobbering(?) local changes.

Here's the situation:

MasterProj and SubProj live in different svn repositories.

MasterProj at -r10 has this svn:externals:

---
SubProj    -r5   file:///tmp/svn/SubProj
---
I have MasterProj -r10 checked out, and I make a local change to
MasterProj/SubProj/subProjFile, I have NOT committed the change.
Elsewhere, someone else changes SubProj/subProjFile, commits it (now SubProj's
latest revision is -r6), updates MasterProj's svn:externals to use SubProj
-r6, and commits MasterProj with the new svn:externals.
 From my MasterProj -r10 checkout, if I do an "svn update", my local
SubProj/subProjFile changes are apparently clobbered as the new SubProj -r6 is
checked out.  A closer look shows me that Subversion has actually backed up my
changes in SubProj.OLD.
Why doesn't Subversion tell me it has detected some sort of a conflict with my
local SubProj/subProjFile, and perhaps attempt a merge?  Even if it doesn't
try the merge, it would be helpful if the "svn update" command told me "I'm
backing up your changes in SubProj.OLD".
Also, this ".OLD" feature would be a good thing to add to the Subversion book
(which is a very well written reference, by the way).
Thanks,
-svec
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