Dr. Atkins in chapter 24 of his "new diet revolution, revised edition", notes that
Type II diabetes is caused by a genetic predisposition to the disease and/or a diet filled with refined carbohydrates combined with an overall decrease in physical activity.
He goes on to mention "Saccharine Disease: The Master Disease of Our Time", by Surgeon Captain T. L. Cleave, MD, a bok that found
almost a dozen cultures in which diabetes (and coronary heart disease as well) simply never occurred until 20 years after the people in that culture began to consume significant amounts of refined carbohydrates
Later he mentions
The simple fact is that the earliest diagnosable state of Type II diabetes is associates with the production of excessive amounts of insulin.
In such a condition, the body does not allow insulin to do its job
He continues to conclude that:
The primary cause is eating too much of the wrong kind of carbohydrates. To a lesser degree eating excessive amounts of protein can affect blood sugar levels; however, when protein is used for its primary function of building muscle mass, insulin is not produced.
After which he states his clinical experience working with diabetics:
In my clinical experience - reading food diaries kept by patients - I have seen time and again that a diabetic following a high-carbohydrate, low-calorie diet with the emphasis on fat reduction will usually find that a meal raises his or her blood-sugar levels an average of 100 points.....
The same person will not that a steak or ... plus a tosses green salad ... will raise the blood sugar level no more than 20 points, if at all.
He does go on to mention that he could find no independent research confirming his own clinical experience, which to me indicates none was performed or published. Other reading I've done on the topic (will try to find references, don't have them here) confirms that.
On the question of whether diabetes can be reversed he writes (again, based on his personal clinical experience with diabetic patients):
If you want to know why I am so certain that the comparison testing will prove Atkins to be so effective, it is because in our clinical experience we have treated over five thousand (emphasis mine) Type II diabetics. Of those taking insulin-stimulating drugs (sulfonylurea) we were able to get the majority off those drugs. And the Type II diabetics taking insulin, more than half were able to cease their injections.
Now this is one source of course, but one who has done his own clinical research and concludes that Type II diabetes can indeed, at least in some patients, be reversed or controlled through a "raw" diet (meaning here a diet low in processed carbohydrates).
Quotes from the Kindle edition of "Dr. Atkins' New Diet Revolution, Revised Edition", Robert C. Atkins MD, ISBN 978-1-59077-002-3, 2002
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http://www.diabetesdaily.com/edelman/2010/03/interview-dr-bernstein-on-low-carb-diets-treatments-politics/ here's another link I found which says much the same thing in other words, by another physician.