This paper makes the point that the Carter Administration is continuing the US policy of spreading militarization round the world, particularly in the Third World. During the Nixon and Ford Administrations, arms sales and transfers came to be used routinely as the quid pro quo in diplomacy. As a Presidential candidate, Carter pledged to reduce US involvement in the conventional arms trade. Nonetheless, within a year of his enunciating his ‘arms sales restraint’ policy in May 1977, the Administration proposed an end to the arms ban on Turkey, approved the sale of AWACs to Iran and 200 warplanes to the Mid-East, as well as a myriad of less controversial weapons deals. The dollar ceiling on arms sales, has been frequently circumvented. Despite the legislation requiring the cessation of military sales, loans and grants to countries in which there is a ‘consistent pattern of gross violations of internationally recognized human rights’, the Carter Administration continues to supply arms to many of the worst human rights offenders. And despite the Arms Export Control Act of 1976, the Administration has failed to act. It is extremely unlikely that any significant change will occur in the world arms trade despite President Carter's pronouncements against the ‘spiralling arms traffic’.