Preheat oven to 350° F. Grease and flour a 9 x 5 x 3-inch loaf pan. In a large mixer bowl combine flour, sugar, applesauce, cocoa, butter or margarine, water, eggs, baking soda, salt and vanilla beat on low speed, scraping bowl occasionally, for 3 minutes.
Stir in walnuts and chocolate chips. Pour into pan. Bake for 50 to 60 minutes or until done Remove from pan cool on a wire rack.
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