Three year old nephew wants to carry our 2 month old at every family visit

My sister-in-law's son is 3 and completely in love with the baby. Every visit he wants to 'carry paapa', and the grown-ups find it very sweet and let him hold her on the sofa with an adult 'right there'. Right there is usually on the phone 😅 I'd hate to be the aunt who makes a three year old cry at every visit. But she is tiny and he is three. How did you handle older cousins with a new baby without hurt feelings on either side?