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From what I can figure out, a Diabolo is an odd-looking juggling device that almost looks like a yo-yo. Not quite sure what that has to do with this cocktail, but who am I to argue. This recipe appears in a few different locations starting around 1930, sometimes it also includes a dash or two of orange bitters, so feel free to add some if you wish.
Watch on Small Screen: http://www.smallscreennetwork.com/video/290/diabolo/
Recipe:
2 oz light rum
1/2 oz dry vermouth
1/2 oz Cointreau
2 dashes Angostura Aromatic Bitters
Instructions:
Stir with ice.
Strain into a cocktail glass.