This question has two answers: The difference was first described in 1936 by Harold Percival Himsworth, which described it in this article. At this time it was established that there are two forms of Diabetes, one sensitive to insuline while the other is not. The terms Diabetes type 1 and 2 where established somewhere between 1974 and 1976, for details see the review "The discovery of type 1 Diabetes".