Combine chocolate morsels and 1/4 cup water in saucepan; stir over low heat until chocolate is melted and smooth.
Remove from heat.
Sift flour, soda and salt together; set aside.
Combine sugar, butter and vanilla in bowl; beat until blended.
Add eggs, one at a time, beating well after each addition.
Blend in melted chocolate mixture.
Stir in flour mixture alter- nately with 1 cup water.
Pour batter into 2 greased and floured 9-inch layer cake pans.
Bake in 375- degree oven for 30 to 35 minutes.